Patheon NV (NYSE:PTHN) stock was soaring on Monday following news that it will be acquired by Thermo Fisher Scientific Inc. (NYSE:TMO).
The deal will have Thermo Fisher Scientific Inc. acquiring Patheon NV for $35 per share. The total value of the deal is $7.2 billion. This includes $2.0 billion of net debt.. TMO is receiving a debt of $5.2 billion from Goldman Sachs Bank USA and Goldman Sachs Lending Partners LLC for the purchase. It will also use equity of $2 billion to fund the deal.
Thermo Fisher Scientific Inc. will be using tender and support agreements to acquire Patheon NV. It has already entered into such agreements with JLL Partners and Royal DSM for them to tender their shares in the offer. These two entities hold 73% of all PTHN shares.
Thermo Fisher Scientific Inc. says that it expects the deal to be immediately accretive to earnings per share in the first year following the acquisition. It is predicting that Patheon NV will add 30 cents to its earnings per share for that year.
Thermo Fisher Scientific Inc. says that it expects the acquisition of Patheon NV to be completed by the end of 2017. However, it will first have to go through customary closing conditions and receive approval from regulators. It will also need commitments to resolutions from PTHN shareholders during an Extraordinary General Meeting.
Goldman Sachs & Co. LLC is acting as financial advisor and Wachtell, Lipton, Rosen & Katz is provide legal counsel to Thermo Fisher Scientific Inc. Patheon NV is getting financial advice from Morgan Stanley & Co. LLC and legal advice from Skadden, Arps, Slate, Meagher & Flom LLP.
PTHN stock was up 33% as of noon Monday.
