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Thermo Fisher Plans Public Offering of $2.2B to Fund Life Tech Buy; Expects Another FTC Request

NEW YORK (GenomeWeb News) – Thermo Fisher Scientific announced after the close of the market on Wednesday a public offering of $2.2 billion of its common stock.

Proceeds from the offering will be used in part to pay for its $13.6 billion pending acquisition of Life Technologies. Thermo Fisher said on Tuesday it had entered into loan agreements for $12.5 billion with various banks and financial institutions also to help pay for the Life Tech purchase.

JP Morgan and Barclays are joint book-running managers for the offering. Bank of America Merrill Lynch is the book-running manager.

Thermo Fisher said that it intends to grant the underwriters of the offering a 30-day option to purchase an additional $330 million of the firm's common stock to cover any over-allotments.

The company also said that in connection with the offering, it expects to enter into forward sale agreements with affiliates of JP Morgan and Barclays.

The deal for Life Tech is expected to be completed in early 2014.

Separately, Thermo Fisher revised the amount of equity it anticipates using to fund the purchase. It now expects to fund up to $3.25 billion of the $13.6 billion price tag with proceeds from equity and equity-linked financings, it said in a document filed with the US Securities and Exchange Commission. The company previously said that it expected to fund the acquisition with up to $4.0 billion of equity.

The remaining $10.35 billion will be funded with proceeds from borrowings and cash on hand at the time of the closing of the deal.

Thermo Fisher also said that it expects to receive a second request for additional information from the US Federal Trade Commission in connection to the acquisition. The company said it will continue to cooperate with the FTC.