Summary
Thermo Electron Corporation (now Thermo Fisher Scientific) announced a significant acquisition on January 19, 2005, entering into a Purchase Agreement to acquire the Kendro Laboratory Products division of SPX Corporation for $833.5 million in cash. This strategic move is expected to expand Thermo Fisher's offerings and market presence within the laboratory products sector. The transaction is subject to customary closing conditions, including regulatory approval, and includes a post-closing adjustment to the purchase price. To finance this acquisition, the company has secured a commitment for a $600 million, 364-day senior unsecured credit facility from JPMorgan Chase Bank, N.A. and JPMorgan Securities Inc. The terms of this new facility are substantially aligned with the company's existing credit agreement, suggesting a well-structured financing plan. Investors should monitor the progress of regulatory approvals and any potential adjustments to the purchase price as the deal progresses.
Key Highlights
- 1Thermo Electron Corporation (TMO) entered into a definitive agreement to acquire SPX Corporation's Kendro Laboratory Products division.
- 2The acquisition price is set at $833.5 million in cash, subject to a post-closing adjustment.
- 3The transaction is contingent upon customary closing conditions, including regulatory approvals.
- 4Thermo Electron has secured a commitment for a $600 million, 364-day senior unsecured credit facility from JPMorgan Chase to fund the acquisition.
- 5The financing terms are expected to be similar to the company's existing credit agreement.
- 6The deal aims to expand Thermo Fisher's presence in the laboratory products market.