DOW JONES NEWSWIRES
Thermo Fisher Scientific Inc. (TMO) Monday said it will buy
analytical instruments and lab-equipment provider Biolab for $120
million (A$175 million) as it looks to expand in the Australia, New
Zealand and South Pacific region.
The move comes after lab-supply company Thermo Fisher reported
last week that first-quarter net income fell 35% on restructuring
charges and falling margins as it cut its full-year guidance.
Lab-supply companies, typically rather resilient in a recession,
have seen sales slow amid cuts to research and capital-spending
budgets. The recession is also drying up donations and endowments
that help fuel university laboratories.
Thermo Fisher also supplies one of the most vulnerable
big-ticket items - mass spectrometers, which are used to identify
the chemical compounds of samples and cost thousands of
dollars.
Chief Executive Marijn E. Dekkers said the acquisition of
Biolab, which is the scientific and medical division of Alesco
Corp. (ALS.AU), would "significantly" boost Thermo Fisher's
presence in the Australian, New Zealand and South Pacific
markets.
Thermo Fisher expects the deal to close Thursday, April 30. Its
shares closed Friday at $33.15 and haven't traded premarket.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com