Summary
Thermo Fisher Scientific Inc. (TMO) has announced a strategic decision to divest its laboratory workstations business, a move aimed at exiting a non-core segment of its operations. This business, part of the Laboratory Products and Services Segment, generated approximately $180 million in revenue and an operating loss of $6 million in 2011. The company anticipates completing the sale within the next 12 months. As a result of this divestiture, Thermo Fisher Scientific will reclassify the financial results of the laboratory workstations business as discontinued operations starting in the second quarter of 2012. The company expects to incur an after-tax charge of approximately $50 million in the second quarter of 2012, reflecting the estimated loss on this planned sale. Investors should monitor potential future adjustments to this loss estimate based on the final sale proceeds.
Key Highlights
- 1Thermo Fisher Scientific Inc. is planning to sell its laboratory workstations business.
- 2The laboratory workstations business is considered non-core to the company's strategy.
- 3The divestiture is expected to be completed within 12 months from the announcement date (June 22, 2012).
- 4In 2011, the divested business reported revenues of approximately $180 million.
- 5The laboratory workstations business incurred an operating loss of approximately $6 million in 2011.
- 6A one-time after-tax charge of approximately $50 million is anticipated in Q2 2012 for the estimated loss on sale.
- 7The financial results of this business will be reported as discontinued operations starting Q2 2012.