Thermo Closes Life Acquisition
On its quarterly conference call, Thermo projected $85 million in synergy cost benefits for the remainder of 2014 and increased the saving amounts for the first full year following the completed acquisition from $85 million to $100 million. Thermo also confirmed synergy savings of $275 million in the third full year following the purchase. In 2014, Thermo adjusted operating margins are expected to expand 220–250 basis points, primarily due to the acquisition. At year-end 2013, Thermo‘s debt totaled $10.5 billion.
Waltham, MA 2/3/14—Thermo Fisher Scientific has completed its $15.1 billion acquisition of Life Technologies (see IBO 4/15/13). The purchase price consisted of $76.13 in cash per fully diluted common share, or approximately $13.6 billion, and the assumption of $1.5 billion in net debt. “Our combined offering provides cutting edge technologies, such as genomics and proteomics, to accelerate life sciences research and improve human health,” commented Thermo President and CEO Marc N. Casper. “And our complementary strengths in biosciences and bioprocessing will accelerate drug discovery, development and production.” Mark Stevenson, COO of Life, has been named executive vice president and president of Thermo’s new Life Sciences Solution Segment, which consists of the majority of the former Life and Thermo Fisher Biosciences businesses (see IBO 1/31/14). Thermo’s Global Chemicals business will move from the Biosciences business to the Laboratory Products and Services Segment. In addition, Thermo’s Analytical Technologies Segment will be renamed Analytical Instruments. Two small specialty diagnostics businesses within Life will be moved to Thermo’s Specialty Diagnostics Segment.
