M&A Report: Thermo Fisher Scientific (TMO) and Life Technologies Corp. (LIFE)


(updated M&A report)

Thermo Fisher in Agreement to Buy Life Technologies for $13.6 Billion

Thermo Fisher Scientific Inc. (TMO) and Life Technologies Corp. (LIFE), makers of laboratory equipment, have agreed to merge operations in early 2014.  Standard & Poor’s Research (S&P) reports, “We believe the proposed merger with TMO makes strategic sense with significant sales and cost synergies. The companies have complementary products with vast geographic reach, and a combination should enhance their leverage.”  The deal “gives TMO a leading presence in the fast growing next-generation sequencing market, the one area where TMO had no presence.”

TMO will pay $76 per share for Life Technologies, totalling $13.6 billion, and assume $2.2 billion in debt.  TMO is expected to grow earnings 8-9% per year for each of the next three years.

TMO had a big run-up since it broke past long-term resistance at $65 in January.  It’s current trading between $81 – $90.

LIFE shares have risen enough that shareholders could make more money by selling, and investing in another growth opportunity, vs. holding the shares until the merger.  (07/07/13)

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