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Mergers and Acquisitions

Date: 2011-05-19

Type of information: Company acquisition

Acquired company: Phadia (Sweden)

Acquiring company: Thermo Fisher Scientific (USA)

Amount: €2.47 billion

Terms:

Thermo Fisher Scientific Inc. has signed a definitive agreement to acquire Phadia, a global leader in allergy and autoimmunity diagnostics, from European private equity firm Cinven, for €2.47 billion (or approximately $3.5 billion) in cash. The transaction, which is expected to be completed in the fourth quarter of 2011, is expected to be immediately accretive to Thermo Fisher’s adjusted earnings per share1 and accretive by $0.26 to $0.30 per share in 2012. Phadia will be part of Thermo Fisher’s Specialty Diagnostics business within its Analytical Technologies Segment. Phadia has approximately 1,500 employees globally. 

* On August 23, 2011, Thermo Fisher Scientific reported that it has completed the acquisition of Phadia. The Swedish company is expected to contribute $0.07 to Thermo Fisher's 2011 full year adjusted earnings per share (EPS). This is a $0.01 increase over the original estimate of $0.06, reflecting more favorable financing rates that will primarily benefit fourth quarter results. Due to the $0.07 impact of Phadia, Thermo Fisher is raising its 2011 full year adjusted EPS guidance to a new range of $4.15 to $4.25, which would result in 20% to 23% EPS growth over 2010. In addition, Phadia is expected to add $190 million to Thermo Fisher's 2011 revenue results. Therefore, the company is also raising its 2011 revenue guidance to a new range of $11.79 billion to $11.89 billion, for approximately 12% revenue growth over 2010.

Details:

Based in Uppsala, Sweden, Phadia develops, manufactures and markets complete blood-test systems to support the clinical diagnosis and monitoring of allergy and autoimmune diseases. Since its founding in 1967, Phadia has been a pioneer in bringing new allergy diagnostic tests to market, and is the global leader for in vitro allergy diagnostics and a European leader in autoimmunity diagnostics. Phadia operates through two leading brands: ImmunoCAP® for allergy tests and EliA™ for autoimmunity tests. The company had 2010 total sales of €367 million (or approximately $525 million), representing a three-year compounded annual growth rate of 10% on a constant currency basis.

Related:

Allergy and Autoimmunity Diagnostics

Is general: Yes