Thermo Expands Indian Presence with Acquisition
As Mr. Dekkers noted in the company’s second quarter conference call, scale is important factor in the success of Western companies in emerging nations. The acquisition gives Thermo such scale, including greater distribution coverage in the country and local manufacturing. According to Qualigens Fine Chemicals’ website, the company has seven zone offices, 15 chemical depots and six diagnostic cold storage facilities.
Thermo Fisher Scientific has entered into an agreement to acquire India-based Qualigens Fine Chemicals from GlaxoSmithKline Pharmaceuticals for INR 240 crore ($59.5 million). According to Thermo, Qualigens is India’s largest laboratory chemical manufacturer and supplier. Based in Mumbai with 150 employees country-wide, Qualigen’s manufactures and sells fine chemicals, diagnostic kits and laboratory products, and had 2006 sales of approximately $24 million. “The well-established and extensive channel network of Qualigens will make Thermo Fisher the leading supplier to India’s research market, allowing us to accelerate our growth in a country where science and industry are moving forward at an exciting pace,” stated Marijn E. Dekkers, Thermo Fisher Scientific’s president and CEO. “In addition to greatly augmenting our premier Fisher Scientific customer channel, Qualigens is an ideal complement to our bioscience reagents and research chemicals business, enabling us to offer a wider range of products to a broader customer base. We also expect to benefit from greater access to local products, raw materials and manufacturing capabilities, as we expand in India and throughout Asia.” The transaction is expected to close early in the fourth quarter.
