Thermo Electron Completes Acquisition of Kendro Laboratory Products
Thermo Electron Corporation, the world leader in analytical instruments, has completed its previously announced acquisition of Kendro Laboratory Products, a division of SPX Corporation (NYSE: SPW).
On January 19, 2005, Thermo Electron announced that it had signed a definitive agreement to acquire Kendro for $833.5 million in cash, subject to a post-closing balance sheet adjustment. Kendro is a global leader in sample preparation products and services for life science, material science and drug discovery applications, with 2004 revenues of approximately $370 million.
“As a company, Thermo is focused on providing total laboratory solutions and services to address our customers’ needs, and Kendro’s technologies nicely complement our existing portfolio of products and services,” said Marijn E. Dekkers, president and chief executive officer of Thermo Electron. “The combined company allows us to deliver even greater value to our customers by creating a broader offering of laboratory and sample preparation technologies, as well as enhanced laboratory service capabilities.”
Mr. Dekkers continued, “This transaction underscores our intent to use acquisitions to gain access to technologies that are of interest to our customers. 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, and we will provide more detailed earnings guidance to reflect the impact of the Kendro acquisition on May 17, 2005, at our annual shareholders’ meeting and investor conference.”
Adjusted EPS excludes restructuring and other costs/income, amortization of acquisition-related intangible assets, certain other gains/losses, tax provisions/benefits related to the previous items and benefit from tax carryforwards.
About Thermo Electron Corporation
Thermo Electron Corporation is the world leader in analytical instruments. Our instrument solutions enable our customers to make the world a healthier, cleaner and safer place. 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. Thermo’s Measurement and Control segment is dedicated to providing analytical instruments used in a variety of manufacturing processes and in-the-field applications, including those associated with safety and homeland security. Based near Boston, Massachusetts, Thermo has revenues of more than $2 billion, and employs approximately 10,000 people in 30 countries. www.thermo.com
