Thermo Fisher Scientific To Buy FEI Co. In $4.2 Bln Deal - Quick Facts

(RTTNews) - Thermo Fisher Scientific Inc. (TMO) said that it agreed to buy FEI Company (FEIC) for $107.50 per share in cash. The transaction represents a purchase price of approximately $4.2 billion.

FEI designs, manufactures and supports high-performance electron microscopy workflows that provide images and information at micro-, nano- and picometer scales. Based in Hillsboro, Oregon, FEI has more than 3,000 employees worldwide and maintains R&D, sales and manufacturing operations primarily in Europe and the U.S. The business, which had 2015 revenues of $930 million, will become part of Thermo Fisher's Analytical Instruments Segment.

The transaction, which is expected to be completed by early 2017, is subject to the approval of FEI shareholders and the satisfaction of customary closing conditions, including applicable regulatory approvals. Thermo Fisher intends to use proceeds from committed debt financing and cash on hand to fund the transaction.

The transaction is expected to be accretive to Thermo Fisher's adjusted EPS by $0.30 in the first full year after close. Thermo Fisher expects to realize total synergies of approximately $80 million by year three following the close, consisting of approximately $55 million of cost synergies and approximately $25 million of adjusted operating income benefit from revenue-related synergies.