logo-loader

Thermo Fisher Scientific To Buy Dionex For $2.1 Billion

Last updated: 14:14 13 Dec 2010 EST, First published: 15:14 13 Dec 2010 EST

no_picture_pai

Thermo Fisher Scientific (NYSE:TMO), a provider of laboratory equipment, said today that it will buy Dionex, a manufacturer of chemical separation systems, for $2.1 billion, or $118.50 per share in cash. 

The purchase price represents a 21% premium to Dionex's closing stock price on Friday.

The deal will add Dionex’s ion and liquid separation offerings to Thermo Fisher’s gas separation offerings.  The deal also gives Thermo Fisher better access to the Asia-Pacific region and emerging markets since Dionex currently generates more than 35% of its revenues there. 

Also, the combined company will be able to offer water analysis products, where growth is driven by new regulatory requirements and increased testing in developing countries such as China.                           

As a result of the deal, Thermo Fisher expects to realize operating synergies of $60 million in the third year after the transaction’s close. 

The transaction is expected to be immediately accretive to Thermo Fisher's adjusted earnings per share by 13 cents to 15 cents  in the first year following the close.

Thermo Fisher said it intends to use cash on hand and proceeds from committed financing from Barclays Capital and J.P. Morgan Securities to pay for the deal.  As of October 2, Thermo Fisher had about $930 million in cash.

Dionex will be integrated into Thermo Fisher's Analytical Technologies Segment after closing of the deal.

 The transaction, approved by both companies’ boards, is subject to customary closing conditions and is expected to be completed in the first quarter of 2011. 

Dionex’s share price has rallied almost 20% on the pre-market to trade at $117.75 as of 9:18 am.  Meanwhile, Thermo Fisher’s shares have rallied 3.6% to trade at $54.95.

Coniagas Battery Metals secures new key ground with focus on...

Coniagas Battery Metals (TSX-V:COS) CEO Frank Basa joined Steve Darling from Proactive to announce the company's strategic acquisition of key ground near SOQUEM’s Cardinal Property, located 80 km southeast of Chibougamau, Quebec. This acquisition underscores Coniagas’ commitment to capitalizing...

55 minutes ago