A Medical Device Daily
Analytical instruments manufacturer Thermo Electron (Waltham, Massachusetts) reported completing its previously announced purchase of Kendro Laboratory Products, a division of SPX (Charlotte, North Carolina). Thermo in January unveiled the agreement to acquire Kendro for $833.5 million in cash, subject to a post-closing balance sheet adjustment (Medical Device Daily, Jan. 21, 2005).
Kendro provides sample preparation products and services for life science, material science and drug discovery, with 2004 revenues of about $370 million.
“Kendro’s technologies nicely complement our existing portfolio of products and services,” said Marijn Dekkers, president and CEO of Thermo. “The combined company [creates] a broader offering of laboratory and sample preparation technologies, as well as enhanced laboratory service capabilities.”
Dekkers added: “It also provides an attractive financial profile for Thermo in terms of earnings and cash flow generation. When we announced the agreement to acquire Kendro in January, we said we expected it to be at least $.10 accretive to our adjusted earnings per share (EPS) in the first full year of ownership and slightly dilutive to GAAP EPS. We are still confident we can deliver these results. . .”
She said the company would provide more details in its earnings guidance at its annual shareholder meeting and investor conference to reflect the impact of the Kendro deal, on May 17.
Thermo’s Life and Laboratory Sciences segment provides analytical instruments, scientific equipment, services and software solutions for life science, drug discovery, clinical, environmental and industrial laboratories. Its Measurement and Control segment provides analytical instruments used in a variety of manufacturing processes and in-the-field applications, including those associated with safety and homeland security.
Thermo has revenues of about $2.7 billion, and employs around 11,000 people in 30 countries.
Kendro’s centrifuge offerings, known by names such as Sorvall and Heraeus, cover applications ranging from the separation of DNA to the separation of whole cells for use in biochemistry, molecular biology, virology, diagnostics and other clinical and research applications. The company’s thermal equipment includes ovens, incubators, freezers and refrigerators for research and industrial applications, marketed under the brands Revco and Jewett.
Kendro also provides services through a global network of technicians, and offers integrated validation services and bio-repositories for sample storage and laboratory relocation.
SPX previously said that proceeds from the sale will be about $675 million and will be used to pay down debt and buy back equity.
In other dealmaking, HealthGate Data (HGAT; Burlington, Massachusetts) said it has sold to Ebsco Publishing (Ipswich, Massachusetts) substantially all of the assets of its patient content repository business for $8.1 million in cash, plus assumption of certain liabilities.
HealthGate is retaining its evidence-based medical guidelines and its Quality Architect and InteractiveIC products and services, which it will “continue to develop, market and license to healthcare organizations,” it said.
HGAT provides evidence-based support tools, applications and healthcare content for healthcare providers and payers. Its affiliations include Duke University Medical Center, Vanderbilt University Medical Center, Emory University School of Medicine and Oregon Health and Science University.