Thermo Electron and Fisher Scientific to merge
Thermo Electron Corporation and Fisher Scientific International are to merge in a tax-free, stock-for-stock exchange. The merger will create the leading provider of laboratory products and services in the life, laboratory and health sciences industry.
Thermo Electron Corporation and Fisher Scientific International are to merge in a tax-free, stock-for-stock exchange. The merger will create the leading provider of laboratory products and services in the life, laboratory and health sciences industry.
The new company will be named Thermo Fisher Scientific Inc. and is expected to have 2007 revenues of more than US$9bn.
Under the terms of the agreement, Fisher shareholders will receive 2.00 shares of Thermo common stock for each share of Fisher common stock they own. Upon completion of the transaction, Thermo's shareholders would own approximately 39% of the combined company, and Fisher shareholders would own approximately 61%.
Marijn E. Dekkers, president and ceo of Thermo, will become president and ceo of the combined company, and Paul M. Meister, vice chairman of the board for Fisher, will become chairman of the board of the combined company.
Thermo and Fisher have complementary technology leadership in instrumentation, life science consumables, software and services. This combination brings together two well-respected industry leaders in the life, laboratory and health sciences marketplace to create a company that has the product breadth, global reach and operational expertise to drive significant value for shareholders, customers and employees,. said Dekkers.
"Both Thermo and Fisher have strong track records of acquisition success and margin expansion. Our customers will benefit from a partnership that can provide integrated, end-to-end application solutions to reduce their costs and increase efficiency."
The transaction is expected to generate $200m of cost and revenue-related synergies in three years. Of this total $150m will be cost-related synergies, excluding one-time costs, expected to result primarily from manufacturing rationalisation, sourcing and logistics efficiencies, and shared administrative functions. The remaining $50m of revenue-related synergies are expected to result from cross-selling opportunities, enhanced geographic reach, penetration of new and existing markets, and new solutions development. Synergies in 2007 are likely to be at least $75m.
The transaction is subject to approval by both companies" shareholders as well as customary closing conditions and regulatory approvals. The transaction is expected to close in the fourth quarter of 2006.