Thermo Fisher To Buy Patheon For $5.2 Billion

Thermo Fisher Scientific had a big announcement on Monday. The world’s number one scientific instruments company said it would be buying Patheon, a Dutch drug ingredients maker, for $5.2 billion.

In the deal, Thermo Fisher has offered $35 per share, which is about a 35% premium to Patheon’s Friday closing price.
Thermo Fisher, the world’s No. 1 maker of scientific instruments, provides research, clinical trial and production services to the biopharmaceutical industry.

Patheon looks like a great fit for the company, which provides research as well as clinical trial and production services to the biopharmaceutical industry. Patheon offers services like regulatory consulting to making drug ingredients and finished medicines. By acquiring Patheon, Thermo Fisher will now have a bigger piece of the fragmented contract development and manufacturing market.

Including debt, the total purchase price is around $7.2 billion. The deal is expected to be completed by the end of the year. It will add to Thermo Fisher’s adjusted profit by 30 cents in the first full year after close.

Disclaimer: We have no position in Thermo Fisher Scientific Inc. (NYSE: TMO) and Patheon NV (NYSE PTHN) and have not been compensated for this article.