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Thermo Fisher Completes $7.2B Patheon Acquisition

NEW YORK (GenomeWeb) – Thermo Fisher Scientific said today it has completed its $7.2 billion acquisition of contract development and manufacturing organization (CDMO) Patheon.

In May, Thermo Fisher announced it had agreed to buy Durham, North Carolina-based Patheon, which offers drug development and delivery solutions to pharmaceutical and biopharmaceutical firms, for $35 per share in cash. Thermo Fisher said it has now acquired roughly 138.4 million of Patheon's ordinary shares, representing about 95.3 percent of the company's outstanding shares.

"By adding Patheon's highly complementary CDMO capabilities to our leading clinical trials services and bioproduction technologies, we will be an even stronger partner for our pharmaceutical and biotech customers," Thermo Fisher President and CEO Marc Casper said in a statement.

Patheon has approximately 9,000 employees, with facilities across North America and Europe. It generated approximately $1.9 billion in revenue in 2016 and will become part of Thermo Fisher's Laboratory Products and Services segment.

Thermo Fisher said that for the remainder of 2017 the transaction is expected to be approximately $.09 accretive to adjusted earnings per share, which includes $.02 in the third quarter. Additional details of the acquisition's 2017 impact will be provided during Thermo Fisher's third quarter earning call scheduled for late October.

Thermo Fisher noted that it continues to expect to realize total synergies of approximately $120 million by year three following the close of the deal, consisting of approximately $90 million of cost synergies and approximately $30 million of adjusted operating income benefit from revenue-related synergies.

During Tuesday morning trading on the New York Stock Exchange, shares of Thermo Fisher were down $.66 at $177.77.