Thermo Fisher Scientific

Thermo Fisher Scientific (TMO) announced on September 7, 2018, that the company will acquire Becton Dickinson’s (BDX) advanced bioprocessing business.

Thermo Fisher to Acquire BDX’s Advanced Bioprocessing Business

The above chart shows details about Thermo Fisher’s deal with Becton Dickinson for the acquisition of the advanced bioprocessing business.

About the announcement

The advanced bioprocessing business includes a strong technical services program and a variety of peptones that enhance the cell culture media formulations, thereby improving the yield and reducing the variability in biopharmaceutical applications.

The advanced bioprocessing business has earned revenues of ~$100 million annually. Also, for the full-year 2018, Becton Dickinson expects the advanced bioprocessing business to generate earnings per share between $0.13 and $0.15.

Thermo Fisher’s business is segregated into four business segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Services. On completion of the transaction, the advanced bioprocessing business is slated to be integrated with Thermo Fisher’s Life Sciences Solutions segment. The acquisition of the advanced bioprocessing business is expected to close in early 2019, subject to customary closing conditions.

Also, Becton Dickinson plans to focus on its life sciences business after the divestment of the advanced bioprocessing business, since the company has outstanding opportunities to contribute towards research and clinical diagnostics.

The companies have not disclosed the financial details of the transaction.

The Invesco S&P 500 Equal Weight Health Care ETF (RYH) holds 1.6% of its total investments in Thermo Fisher Scientific (TMO), 1.6% in Becton Dickinson (BDX), 1.6% in Medtronic (MDT), and 1.6% in Johnson & Johnson (JNJ).

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