May 9, 2006 – Thermo Electron Corp., Waltham, MA, a provider of measurement and control equipment, has agreed to acquire Fisher Scientific International Inc., a Hampton, NH-based supplier of laboratory supplies, in a “reverse merger,” creating a $9 billion company providing laboratory products and services.
Under terms of the deal, the new company, Thermo Fisher Scientific Inc., will have an estimated $9 billion in revenues and $1 billion in cash flow, with a projected 20% compound annual growth rate in adjusted EPS over three years. Fisher shareholders will own about 61% of the company, which will be headquartered in Waltham, while retaining offices in Hampton. Marijn Dekkers, Thermo Electron president and CEO, will retain those titles with the new company; Fisher chairman and CEO Paul Montrone will step aside, with Fisher vice-chairman Paul Meister becoming chairman of the combined company.
Thermo expects 2007 adjusted earnings per share of the combined company to be in the range of $2.27 to $2.37, reflecting accretion of approximately 18 percent to Thermo’s consensus 2007 adjusted EPS. The two firms also project the transaction will generate $200 million of cost and revenue-related synergies in three years, including at least $75 million in 2007. About $150 million of cost-related synergies is expected, excluding one-time costs, primarily from manufacturing rationalization, sourcing and logistics efficiencies, and shared administrative functions.