UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 18, 2018
HAEMONETICS CORPORATION
(Exact name of registrant as specified in its charter)
Massachusetts | 001-14041 | 04-2882273 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
400 Wood Road, Braintree, MA | 02184 | |
(Address of principal executive offices) | (Zip Code) | |
Registrant’s telephone number, including area code: 781-848-7100
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): | |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | |
Emerging Growth Company o | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o | |
Item 1.01 Entry into a Material Definitive Agreement.
On December 18, 2018, Haemonetics Corporation (the “Company”) entered into an office lease agreement (the “Lease”) with OPG 125 Summer Owner (DE) LLC (“Landlord”) for 62,066 rentable square feet of space located at 125 Summer Street, Boston, MA (the “Premises”). The Premises will serve as the Company’s new corporate headquarters and replace its existing location in Braintree, MA.
The term of the Lease is 152 months (including an initial 8 month free-rent period beginning on October 1, 2019) and will commence on the date that Landlord has substantially completed construction of the Premises’ warm shell and all tenant improvements, which is currently targeted as October 1, 2019. The Company has options to extend the initial term of the Lease for two additional five-year periods. Landlord has agreed to provide a tenant improvement allowance towards leasehold improvements, and the Company will be responsible for the cost of tenant improvements that exceed such allowance.
In addition to base rent, the Company will be responsible for certain operating expenses specified in the Lease, including a proportionate share of real estate taxes and other customary costs incurred by Landlord. The Lease also contains customary default provisions allowing the Landlord to terminate the Lease if the Company fails to cure certain breaches of its obligations under the Lease within a specified period of time. In addition, the Company will be obligated to indemnify the Landlord for certain losses incurred in connection with the Company's use and occupancy of the Premises.
The foregoing description of the Lease does not purport to be complete and is qualified in its entirety by reference to the full text of the Lease, a copy of which will be filed with the Company's Quarterly Report on Form 10-Q for the quarterly period ending December 29, 2018. A copy of the Company’s press release announcing its entry into the Lease and headquarters relocation to Boston is filed as Exhibit 99.1 to this Current Report on Form 8-K.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth under Item 1.01 is hereby incorporated by reference into this Item 2.03.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit Number | Description | |
Press release dated December 19, 2018 | ||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
HAEMONETICS CORPORATION | ||||
Date: December 19, 2018 | By: | /s/ Christopher Simon | ||
Name: | Christopher Simon | |||
Title: | President and Chief Executive Officer | |||
Exhibit 99.1
FOR IMMEDIATE RELEASE
Investor Contact: Gerry Gould, VP-Investor Relations (781) 356-9402 | Media Contact: Carla Burigatto, VP-Communications (781) 348-7263 | |
HAEMONETICS ANNOUNCES HEADQUARTERS RELOCATION TO BOSTON
Braintree, Mass., Dec. 19, 2018 - Haemonetics Corporation (NYSE: HAE), a global medical technology company focused on delivering innovative hematology solutions to drive better patient outcomes, announced today that the company will be relocating its global headquarters to downtown Boston from its current location in Braintree, Massachusetts. Haemonetics’ new headquarters will occupy over 62,000 square feet at 125 Summer Street.
“Haemonetics’ move to Boston will position our teams to work in close proximity to the city’s world-class healthcare, technology and higher education communities and its thriving culture of innovation,” said Chris Simon, President and CEO of Haemonetics. “As a company driving accelerated growth, this move will provide a dynamic space to engage our employees as we advance our ways of working.”
The new Boston headquarters will enable Haemonetics to right-size its footprint by selling its 40-acre campus in Braintree and will provide a sustainable, contemporary workplace, including dedicated lab and research space, to support the company’s collaborative, performance-driven culture. The company’s corporate and commercial teams will sit side by side with its research and development organizations. The company has signed a multiyear lease through 2032 and expects to have employees located across four floors of the 495,000 square foot LEED and Energy Star certified office tower.
The new office location offers convenient access to Interstate 93, the Massachusetts Turnpike, Logan International Airport, Downtown Crossing and South Station, the city’s main multimode transportation center. The move to the new location is expected to commence within the next year. With approximately 3,000 global employees, Haemonetics expects to move its more than 200 headquarters based positions to the new location.
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"We're excited to welcome Haemonetics to 125 Summer Street as we continue to create a destination for innovative companies. We look forward to continuing our partnership with them to create an inspiring workspace for their employees,” said Matthew Polhemus, Senior Leasing Manager at Oxford Properties.
Cushman & Wakefield brokered the lease for Haemonetics with Oxford Properties Group, owner and manager of 125 Summer Street, and will also represent Haemonetics in the sale of the current Braintree campus.
About Haemonetics
Haemonetics (NYSE: HAE) is a global healthcare company dedicated to providing a suite of innovative hematology products and solutions for customers, to help them improve patient care and reduce the cost of healthcare. Our technology addresses important medical markets: blood and plasma component collection, the surgical suite and hospital transfusion services. To learn more about Haemonetics, visit www.haemonetics.com.
FORWARD LOOKING STATEMENTS
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements. Forward-looking statements in this press release may include, without limitation, statements regarding the expected benefits and timing of Haemonetics’ headquarters relocation and the potential sale of its Braintree campus. Such forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and may not be realized because they are based upon Haemonetics’ current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks and uncertainties and other influences. Actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties. Factors that may influence or contribute to the inaccuracy of the forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation, delays in and costs associated with development and occupancy of the Summer Street location, economic conditions in the Boston, MA metropolitan area, and other risk factors identified and described in more detail in Haemonetics’ periodic reports and other filings with the Securities and Exchange Commission. Haemonetics does not undertake to update these forward-looking statements.
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