Thermo Fisher prices $2.2 billion stock offering

Thermo Fisher raises $2.2B in stock offering, proceeds slated for Life Technologies deal

Associated Press

WALTHAM, Mass. (AP) -- Thermo Fisher Scientific Inc. has raised $2.2 billion from an offering of more than 25 million shares, and the scientific instrument maker expects to use the proceeds to help pay for its purchase of Life Technologies Corp.

The Waltham, Mass., company said Friday it priced the offering at $85.50 per share. It also granted underwriters a 30-day option to buy an additional 3.8 million shares to cover any excess demand. That could raise an additional $330 million, not counting discounts and commissions.

Thermo Fisher used forward-sale agreements, in which the banks underwriting the offering borrowed shares from other parties. That helped the company prevent, for now, a dilution in its share count. Thermo Fisher then will issue new shares to the banks when its Life Technologies deal closes, and the banks will return the shares they borrowed.

Thermo Fisher said in April that it reached a deal to spend about $13.6 billion, or $76 in cash for each share of Life Technologies, which is based in Carlsbad, Calif.

Life Technologies offers more than 50,000 products and delves into genetic analysis and engineering, stem cell therapies and chemicals used in forensics and food safety. Its next-generation DNA sequencing, currently used in research labs, is designed to sequence a person's entire genome in one day for $1,000, which is faster and cheaper than previous forms of analysis.

DNA sequencing helps analyze a person's genetic predisposition for diseases like cancer and can potentially help doctors better understand how a disease will grow and spread, allowing them to focus on more effective treatments. Thermo Fisher expects that technology to be a key driver of long-term growth.

Thermo Fisher expects the deal to close early next year.

Shares of Thermo Fisher fell more $2.01, or 2.3 percent, to $84.94 Friday before markets opened and after the company announced the pricing on the offering. The stock closed Thursday at $86.95, up 36 percent since the start of the year.

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