Life Technologies, KDR Biotech Co. Ltd., Thermo Fisher deal

Thermo Fisher will acquire Life Tech for $76 per share in cash, which the companies said values Life Tech at about $13.6 billion on a fully diluted basis. Thermo Fisher also will assume Life Tech's net debt. The price is a 12% premium to Life Tech's close of $68 on April 12, before the deal was announced, and a 38% premium to Life Tech's close on Jan. 17, before the tools and reagents company announced its board retained Deutsche Bank and Moelis & Co. to assist in the company's annual strategic review. Life Tech had 2012 revenues of $3.8 billion. At Dec. 31, 2012, the company had about $2.2 billion in debt. Thermo Fisher reported 2012 revenues of $12.5 billion.

The boards of both companies have approved the deal, which is subject to approval by Life Tech shareholders. The deal is expected to close early next year. Thermo Fisher retained JPMorgan and Barclays as financial advisors and Wachtell, Lipton, Rosen & Katz and WilmerHale as legal counsel. Life Tech retained Cravath, Swaine and Moore LLP as legal counsel. Thermo Fisher said it will finance the deal through a combination of cash and a bridge loan from its advisors, as well as up to $4 million in equity. Thermo Fisher said Life's consumables for genomics and molecular and cell biology will enhance its portfolio and that it expects the acquisition to be significantly and immediately beneficial to adjusted EPS. ...