Private Equity Team in Talks to Buy Life Technologies

Life Technologies’ stock has risen 8.7% for the first two weeks ending March 15 to $63.20 per share and is up 15.0% since the initial takeover speculation. Despite the increase, the company is trading at 15 times this year’s estimated earnings, which is lower than many of its closest competitors due to slower growth forecasts.

New York, NY 3/5/13; New York, NY 3/6/13; New York, NY 3/12/13—Reuters reported on March 5 that private equity firms are interested in jointly making an offer to acquire Life Technologies (see IBO 1/31/13, 2/28/13), according to people familiar with the situation. The consortium would include Blackstone, Carlyle, TPG Capital and Temasek Holdings, but discussions are preliminary. Bloomberg reported on March 6 that the consortium is in discussions with banks regarding financing the deal, and that bids for Life Technologies are due next month. Sources told Bloomberg that Life Technologies Chairman and CEO Greg Lucier would prefer the company be acquired by private equity firms, rather than a competitor, so that he could retain his position. A different source told Bloomberg that Bain Capital is unlikely to bid. Reuters reported on March 13, referencing a Wall Street Journal article, that KKR&CO is interested in partnering with private equity firms to bid for the company. Separately, Danaher and Thermo Fisher Scientific are also interested in a possible bid, according to the article.

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