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Thermo Fisher Scientific Antes Up $4.2 Billion for FEI

Written by: | | Dated: Friday, May 27th, 2016

Thermo Fisher Scientific Expands into Pharma Market, Antes Up $4.2 Billion for FEI Company

Thermo Fisher Scientific Expands into Pharma Market, Antes Up $4.2 Billion for FEI Company
May 27, 2016
By Alex Keown, Breaking News Staff

WALTHAM, Mass. — Life sciences giant Thermo Fisher Scientific (TMO) ponied up $4.2 billion to buy Oregon-based FEI Co. in order to gain access to that company’s electron microscopy technology, the company announced Thursday.

Marc Casper, president and chief executive officer of Thermo Fisher Scientific, said FEI’s electron microscopy technology is a strategic fit for Fisher and should create “significant value” for the company’s shareholders.

“In life sciences, there is growing adoption of electron microscopy to study the structure of proteins. The technologies we gain with FEI will complement our mass spectrometry leadership, putting Thermo Fisher in the best position to capitalize on this important trend,” Casper said in a statement. “As the unrivaled leader in life sciences, we will also be able to leverage our global scale and commercial reach to extend the use of FEI’s products within our large biopharma customer base.” The addition of FEI and its imaging technologies is expected to expand Thermo Fisher’s capabilities in materials science. Thermo Fisher said FEI’s 3D nano-characterization and nano-prototyping technologies are “critical tools that support the growing trend toward development of devices that are increasingly smaller and more complex to manufacture.”

The move by Thermo Fisher comes about two months after that company snapped up gene sequencing company Affymetrix (AFFX) for $1.3 billion. That deal provided Thermo Fisher with an expanded antibody portfolio and genetic analysis capabilities.

The deal with FEI values share prices of that company at $107.50 per share. This morning shares of FEI are up nearly 13 percent from Thursday’s closing price of $94.58 per share to $107.51 per share.

FEI, which posted revenues of $930 million in 2015, will become part of Thermo Fisher’s Analytical Instruments Segment. FEI has more than 3,000 employees worldwide and maintains R&D, sales and manufacturing operations primarily in Europe and the U.S.

Don Kania, CEO of FEI, touted the deal with Thermo Fisher, saying company shareholders will see immediate and substantial value from the deal.

“Fundamentally, this transaction bolsters our already strong position in the marketplace and allows us to play an increasing role in enabling our customers to accelerate breakthrough discoveries, increase productivity and provide solutions to global challenges,” Kania said in a statement.

Casper said he welcomed the FEI employees into the Thermo Fisher family. There was no mention if the acquisition will lead to any possible layoffs. Kania said he anticipates FEI employees will have new opportunities due to the development and marketing expansion provided by Thermo Fisher.

The deal with FEI is expected to close sometime in 2017. JP Morgan is acting as financial adviser to Thermo Fisher and Goldman Sachs is acting as the financial adviser to FEI Corp.

Source: BioSpace

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