Thermo Fisher Scientific will acquire CDMO Patheon N.V., a global provider of high-quality drug development and delivery solutions to the pharmaceutical and biopharma sectors, for a purchase price of about $7.2 billion, which includes the assumption of approximately $2.0 billion of net debt.
Patheon provides comprehensive, integrated and customizable solutions as well as the expertise to help biopharmaceutical companies of all sizes satisfy complex development and manufacturing needs, according to a press release. Patheon has an extensive network of facilities primarily in North America and Europe, and about 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.”
The transaction, which is expected to be completed by the end of 2017, is subject to the satisfaction of customary closing conditions. The company expects to finance the purchase price with debt of approximately $5.2 billion and equity of approximately $2 billion. The offer is not subject to any financing condition.