Fisher Scientific bought by Thermo Electron

Two New England-based scientific lab supplies firms are set to become one with the approval by shareholders on 30 August 2006 of Thermo Electron“s USD 10.6 billion acquisition of Fisher Scientific In…

Two New England-based scientific lab supplies firms are set to become one with the approval by shareholders on 30 August 2006 of Thermo Electron“s USD 10.6 billion acquisition of Fisher Scientific International Inc. to create Thermo Fisher Scientific Inc. Waltham, Massachusetts-based Thermo Electron Corp. said holders of more than 98% of the shares represented at its meeting voted in favor of the transaction, which was announced 8 May 2006. At the separate meeting held by Hampton, New Hampshire-based Fisher Scientific, the vote was 99% in favor of the deal, which will grant Fisher shareholders two shares of Thermo common stock for each Fisher share. The transaction still requires regulatory approval, and is expected to close in the 4Q 2006. In late August 2006, the companies said they planned to sell off a USD 17 million Fisher Scientific product line to satisfy an issue raised by the Federal Trade Commission. Thermo Electron, the smaller of the two companies, is buying Fisher in a deal that pairs Thermo Electron“c main business making and selling reusable scientific instruments with Fisher“s single-use chemical agents and lab equipment such as glass beakers and tubing. The companies expect to achieve operational efficiencies in manufacturing, sales, delivery and administrative operations, and to cross-promote each other“s products to industrial and academic customers as well as labs in faster-growing markets in the health care and pharmaceutical industries. The combined company will have 30,000 employees. Thermo will assume USD 2.2 billion in Fisher“s debt in addition to paying USD 10.6 billion. Thermo had revenue of USD 2.63 billion in 2005 compared to Fisher“s USD 5.58 billion. The combined company will be headquartered at Thermo“s offices in Waltham and maintain an office 60 miles northeast at Fisher“s headquarters in Hampton.