Thermo Fisher Scientific Positioned as One-Stop Shop for Products and Services
Valued at approximately $10 billion, the deal ensures revenues of $9 billion in revenues.!--h2>
Thermo Electron and Fisher Scientific International reported that the merger of the two companies has been completed, creating Thermo Fisher Scientific. The new company, headquartered in Waltham, MA, has approximately $9 billion in revenues and 30,000 employees in 150 countries. “The acquisition provides a huge range of analytical technologies and a full suite of software packages and equipment that goes along with it to our customer base,” says Marc Casper, executive vp and president of analytical technologies, previously senior vp of Thermo.
In a deal valued at a little over $10 billion, the companies combined in a tax-free, stock-for-stock transaction following antitrust clearance received from the European Commission early November 9, 2006. “With this transaction, we have created the world’s only provider of fully integrated, end-to-end solutions in the life, laboratory, and health sciences industry,” says Paul M. Meister, chairman of the board of Thermo Fisher Scientific and previously vice chairman of Fisher Scientific.
The merger was first reported in May, 2006. In response to the FTC’s finding on October 17, 2006, that this acquisition would harm competition in the U.S. market for high-performance centrifugal vacuum evaporators (CVEs), Thermo was required to divest Fisher’s $17-milliion Genevac division. Thermo and Fisher are the only two significant suppliers in the approximately $10-million U.S. market for high-performance CVEs, accounting for approximately 30% and 70% market share, respectively.
“The new company combines Thermo’s industry-leading analytical instrumentation with Fisher’s world-renowned laboratory reagents and consumables,” says Marijn E. Dekkers, president and CEO of Thermo Fisher Scientific. “As a result, we can deliver advanced technological solutions and integrated workflows to help our customers push the boundaries of scientific discovery, with increased efficiency. In addition, we have unprecedented access to our customers across the globe through the largest sales force in the industry, and through our catalog and e-commerce channels. With a seasoned leadership team in place, we now look forward to realizing the benefits of this combination quickly and seamlessly, while working toward the long-term success of our new organization.”
Under the terms of the agreement, Fisher shareholders received two shares of Thermo common stock for each share of Fisher common stock they own. Thus, Thermo’s shareholders own approximately 39% of the combined company, and Fisher shareholders own approximately 61%. “We are uniquely positioned to accelerate earnings growth for our shareholders, enhance our capabilities for customers and multiply opportunities for our employees,” says Meister.