I guess FSH does have money spend. A big buy to!
06-26-03 1008ET DJ Fisher Sci Up -2: Shares Reach 52-Week High Of $37.10>FSH
By Johanna Bennett
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Shares of laboratory equipment supplier Fisher Scientific International Inc. (FSH) rose 12% Thursday after the company announced plans to pay $714 million in cash to buy Sweden's Perbio Scientific AB (S.PBS) in an effort to enhance its life-science business.
Shares of the Hampton, N.H., company were trading at $35.40 on the New York Stock Exchange, up $3.92, or 12.5% on volume of 1.8 million compared with average daily volume of 556,300. The stock hit a new 52-week high of $37.10; the previous high was $33.65 on June 17.
"I think this is a good buy for Fisher. It is certainly positive for Fisher's shareholders," said Stephens Inc. analyst John Sullivan, who rates the stock at overweight and does not own shares. His firm does not have a banking relationship with the company. "It fits well with Fisher's strategy."
Perbio, headquartered in Sweden, focuses on manufacturing consumable tools for protein-related research and drug production. Fisher said the acquisition will boost sales and add 10 cents to 15 cents a share to operating profits in 2004.
Fisher forecasts 2004 profits of $2.65 to $2.80 a share compared to Wall Street's latest estimate of $2.59 a share. The company's expects to earn between $3.20 and $3.35 in 2005.
During the last decade Fisher has acquired several dozen companies, many of them small firms that are considered "tuck in" acquisitions. In the process, the company has earned a reputation for its skill at integrating the companies it buys, Sullivan said.
Perbio derives about two-thirds of its business from sales in North America. Buying the company allows Fisher to increase revenue generated by selling products it manufactures itself, which improves both margins and profits.
Meanwhile, the markets for Perbio's two primary business - bioresearch products and cell culture products - are growing fast, expected to jump 10% to 15% between 2003 and 2004.
Marketed under the HyClone brand, Perbio's cell culture products are used to develop vaccines. Bioresearch products marketed under the Pierce and Endogen brands help identify proteins used to develop drugs.
The deal is expected to close in the third quarter of this year.
The company expects to record transaction related costs of about 46 cents a share for fiscal 2003. Excluding those costs, Fisher said it is maintaining its 2003 earnings outlook of $2.20 to $2.30 a share.
By Johanna Bennett; Dow Jones Newswires; 201-938-5240; johanna.bennett@ dowjones.com
(END) Dow Jones Newswires
06-26-03 1056ET
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