Thermo Fisher buying Patheon for $5.2 billion
Thermo Fisher Scientific Inc. is buying Patheon for $5.2 billion, giving the scientific instrument maker more access to the contract development and manufacturing organization market.
Thermo Fisher will pay $35 for each share of Patheon NV, based in the Netherlands. That's a 35 percent premium to the company's Friday closing price of $26.
Patheon's stock soared more than 33 percent in Monday premarket trading.
The companies value the transaction at $7.2 billion, including debt.
Patheon, which had 2016 revenue of approximately $1.9 billion, will become part of Thermo Fisher's laboratory products and services unit.
Thermo Fisher, which is based in Waltham, Massachusetts, anticipates about $120 million in total savings by the third year after the transaction closes.
The deal is expected to close by the end of the year.