Thermo Fisher Scientific to Acquire Patheon for $5.2 Billion
May 15 2017 - 7:44AM
Dow Jones News
By Imani Moise
Lab-equipment company Thermo Fisher Scientific Inc. said Monday
it would buy drug-development technology company Patheon NV in a
deal worth about $5.2 billion.
Patheon shareholders will receive $35 in cash per share,
representing a 35% premium from Friday's closing price of $26.
Thermo Fisher will also assume about $2 billion of net debt.
Thermo Fisher said the deal gives it a way into the high-growth
end-to-end biotech solutions market and that Patheon will help
reduce the time and cost of delivering medicines to market for its
customers.
Patheon is a so-called contract development manufacturing
organization, helping biopharmaceutical firms take on complex
development and manufacturing needs.
The deal, expected to close by the end of the year, still
requires regulatory and shareholder approval, though Thermo Fisher
said it has already secured agreements with affiliates of JLL
Partners and Royal DSM to support the deal. They hold a combined
73% stake in Patheon, Thermo said.
Thermo Fisher has relied largely on acquisitions for growth,
spending $5.5 billion on deals during the 2016 fiscal year. The
company expects the latest transaction to contribute 30 cents a
share to its bottom line in the first full year after closing.
Patheon stock shot up 34% during premarket trading, approaching
the deal price and offsetting a 17% decline over the past three
months through Friday's close. Thermo Fisher's stock, which had
already gained 22% so far this year, was inactive.
Write to Imani Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
May 15, 2017 08:29 ET (12:29 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
PATHEON N.V. (NYSE:PTHN)
Historical Stock Chart
From Jun 2024 to Jul 2024
PATHEON N.V. (NYSE:PTHN)
Historical Stock Chart
From Jul 2023 to Jul 2024
Real-Time news about Patheon N.V. Ordinary Shares, Par Value 0.01 Per Share (delisted) (New York Stock Exchange): 0 recent articles
More Patheon N.V. Ordinary Shares, Par Value 0.01 Per Share News Articles