Thermo Fisher Scientific to Buy FEI for $4.2 Billion
May 27 2016 - 11:53AM
Dow Jones News
By Anne Steele
Lab-equipment company Thermo Fisher Scientific Inc. on Friday
said it reached a deal to acquire microscope-technology maker FEI
Co. for $4.2 billion in cash.
The purchase price, at $107.50 a share, represents a 14% premium
to FEI's closing price on Thursday. The maker of high-end electron
microscopes will join Thermo Fisher's analytical instruments
segment.
"In life sciences, there is growing adoption of electron
microscopy to study the structure of proteins," said Thermo Fisher
Chief Executive Marc Casper. "The technologies we gain with FEI
will complement our mass spectrometry leadership," which he said
will allow Thermo Fisher to benefit from the trend.
The technology that FEI has pioneered is in structural
biology--the study of proteins in the body--a key in drug
research.
"That's growing in importance for our biopharma customers," Mr.
Casper said in an interview, adding that those companies account
for 30% of Thermo Fisher's revenue.
"Those customers are very excited about what's going on with
electron microscopy," he said.
Analysts at Leerink called the acquisition a "logical fit" since
"electron microscopy represented a gap in Thermo's scientific
instruments offering."
FEI, Hillsboro, Ore., has more than 3,000 employees world-wide
with operations primarily in Europe and the U.S. Mr. Casper said
the business, which posted $930 million in revenue last year, will
immediately add to Thermo Fisher's earnings.
The deal is expected to close by early 2017 and add $1 billion
in revenue and 30 cents a share to earnings in the first year.
Thermo Fisher in March completed its acquisition of Affymetrix
Inc. for $1.3 billion, following the genetics firm's rejection
earlier of a higher rival bid submitted by former executives of the
company.
It previously added Life Technologies Corp. in February 2014 for
$13.6 billion and allergy-testing firm Phadia AB for EUR2.5 billion
in 2011.
On Thursday, Mr. Casper said the FEI deal is part of $12 billion
Thermo Fisher plans to spend on acquisitions through 2019.
"We'll continue to be active," he said.
Shares of Thermo Fisher added 0.3% midday to $151.64, while
shares of FEI climbed 14% to 107.55%.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
May 27, 2016 11:38 ET (15:38 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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