Sunday 27 May 2018

Thermo Fisher to buy Patheon for $5.2bn

WASHINGTON, May 16, 2017

Thermo Fisher Scientific said on Monday it would buy Dutch-based Patheon, a global leader in pharmaceutical and biopharma sectors, for $5.2 billion.

Thermo Fisher will commence a tender offer to acquire all of the issued and outstanding shares of Patheon for $35.00 per share in cash. The transaction represents a purchase price of approximately $7.2 billion, which includes the assumption of approximately $2 billion of net debt.

Patheon provides comprehensive, integrated and highly customizable solutions as well as the expertise to help biopharmaceutical companies of all sizes satisfy complex development and manufacturing needs. It is a leader in the high-growth, $40 billion contract development and manufacturing organization (CDMO) market, which is fuelled by growing customer demand for end-to-end solutions, flexible and scalable capacity, and regulatory expertise.

Patheon has an extensive network of state-of-the-art facilities primarily in North America and Europe, and approximately 9,000 professionals worldwide. The company generated 2016 revenue of approximately $1.9 billion and will become part of Thermo Fisher’s Laboratory Products and Services Segment.

“Patheon’s development and manufacturing capabilities are an excellent complement to our industry-leading offering for the biopharma market,” said Marc N Casper, president and chief executive officer of Thermo Fisher Scientific. “Our combined capabilities will enhance our unique value proposition for these customers, create significant value for our shareholders and further accelerate our company’s growth.”

James C Mullen, chief executive officer of Patheon, said: “Over the past several years, we have increased our capabilities to become a leading CDMO provider in a highly fragmented market. We are confident that our combined offerings and Thermo Fisher’s proven track record of disciplined M&A and successful integrations will take our business to the next level.”

Casper added, “We look forward to welcoming our new colleagues from Patheon to Thermo Fisher. Patheon’s commitment to quality and service excellence is directly aligned with our focus on helping our biopharma customers accelerate innovation and drive productivity.” – TradeArabia News Service

Tags: Biopharma |

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