As mentioned in the CC. FSH named it's targets today (not here).
CORRECTED - UPDATE 2-Fisher Scientific to buy two private companies
2/12/2004 11:18:43
In Feb 11 NEW YORK story headlined "UPDATE 2-Fisher Scientific to buy two private companies," please attribute quotes in paragraphs 4, 5, 10 and 11 to Vice Chairman Paul Meister instead of Chief Executive Paul Montrone (corrects attribution)
By Bill Berkrot
NEW YORK, Feb 11 (Reuters) - Fisher Scientific International Inc. (FSH) on Wednesday said it agreed to acquire two privately held companies for a total of $410 million to strengthen its life sciences division, and raised its earnings forecasts.
Fisher said it will pay $330 million for Basingstoke, England-based Oxoid Group Holdings Ltd., which makes tools that test for bacterial contamination. It also agreed to buy Lafayette, Colorado-based Dharmacon, which produces synthesized RNA for genetic research, for $80 million.
The deals will be financed with a combination of cash and debt, Fisher said.
The shift toward a greater focus in life sciences, which includes last June's acquisition of Perbio Science AB of Sweden for $714 million, "translates into higher margins and enhanced earnings growth for Fisher," Vice Chairman Paul Meister told analysts in a conference call.
"These acquisitions are about revenue growth, not cost savings," he said.
Hampton, New Hampshire-based Fisher said the acquisitions should add 5 cents to 7 cents per share to 2004 earnings and 10 cents to 15 cents per share in 2005.
Fisher now expects 2004 earnings of $2.75 to $2.87 per share, up from its previous forecast of $2.70 to $2.80. The company is projecting 2005 earnings per share of $3.30 to $3.50.
Fisher said it expects 2004 revenue growth of about 13.5 percent to 15.5 percent, and 2005 revenue growth of about 7.5 percent to 9.5 percent.
Oxoid has annual revenue of $155 million, Fisher said. Dharmacon has revenue of $17 million. The acquisitions will enhance Fisher's line of products for customers engaged in drug and biotechnology research and discovery.
The existing management teams of both companies will continue to run day-to-day operations and Fisher has negotiated contract extensions with all key management, Meister said.
"We expect to have them around to help us grow these businesses," Meister added. |
