Thermo Fisher Scientific Inc. (TMO) has agreed to buy Doe & Ingalls Management LLC for $175 million in cash, as the supplier of analytical technologies and laboratory products continues its acquisition spree.
Doe & Ingalls provides specialty production chemicals and related services to the biopharmaceutical and microelectronics industry. The company generated revenue of $110 million in 2011.
Thermo Fisher, which recently reported its first-quarter earnings rose 10% on a revenue rise from all segments, has seen strong sales growth over recent quarters, aided by acquisitions and its expansion into Asia-Pacific markets. Last year, the company agreed to buy closely held allergy-testing company Phadia AB for $3.5 billion.
"Doe & Ingalls will strengthen our value proposition by adding products and services that address the production market within our extensive customer base, which we have historically served primarily from a research perspective," said Thermo Fisher's Chief Executive Marc N. Casper.
The deal comes amid a heated battle for acquisitions in the laboratory equipment sector. Earlier this week, Hologic Inc. (HOLX) agreed to acquire test-maker Gen-Probe Inc. (GPRO) in a $3.7 billion deal intended to expand the health-products company's diagnostics business.
Doe & Ingalls will be part of Thermo Fisher's customer channels business within its laboratory products and services segment.
Shares of Thermo Fisher were down fractionally in recent trading to $55.53. Through Monday's close, the stock was up 23% so far this year.
-By Kristin Jones; Dow Jones Newswires; 212-416-2208; kristin.jones@dowjones.com
