Thermo Fisher Scientific Closes $7.2B Patheon Deal

Aug. 30, 2017

As first announced in May 2017, Thermo Fisher Scientific has completed its acquisition of CDMO Patheon N.V. for about $7.2 billion. Today's close follows the expiration of Thermo Fisher's initial tender offer for Patheon at $35.00 per share in cash.

"We're pleased to complete our acquisition of Patheon and look forward to the significant value this transaction will create for our customers and our shareholders," said Marc N. Casper, president and chief executive officer of Thermo Fisher Scientific. "By adding Patheon's highly complementary CDMO capabilities to our leading clinical trials services and bioproduction technologies, we will be an even stronger partner for our pharmaceutical and biotech customers."

Patheon generated fiscal 2016 revenue of approximately $1.9 billion and will become part of Thermo Fisher's Laboratory Products and Services Segment. Details of the 2017 impact will be provided during Thermo Fisher's third quarter earnings call in late October.

Thermo Fisher says it expects to realize total synergies of about $120 million by year three following the close, consisting of approximately $90 million of cost synergies and about $30 million of adjusted operating income benefit from revenue-related synergies.

According to a press release, Patheon has requested that the New York Stock Exchange suspend trading of Patheon ordinary shares after the close of business on Sept. 1, 2017. Following delisting from the NYSE, Patheon ordinary shares will not be listed or registered on another national securities exchange. Delisting is likely to reduce significantly the liquidity and marketability of any Patheon ordinary shares that have not been tendered pursuant to the tender offer.