Thermo Fisher focused on growing current portfolio after acquisitions

By Jennifer Lanning Drey

Savannah, Ga., June 7 - Thermo Fisher Scientific Inc. took its leverage ratio to 2.8 times EBITDA with its last acquisition and could go a little over 3 times EBITDA for the right opportunity, but the company's focus is on driving top-line growth with its current portfolio, Marc Casper, the company's chief executive officer, said during a Tuesday investor presentation.

"We really have a big focus on integrating the acquisitions that we've announced and delivering on the financial commitments," Casper said while speaking at the Goldman Sachs Healthcare Conference in Rancho Palos Verdes, Calif.

Thermo Fisher was active in the merger-and-acquisition market in the first half of the 2011. The company announced a $3.5 billion agreement in May to acquire Phadia, a Swedish developer, manufacturer and marketer of blood-test systems related to allergy and autoimmunity diagnostics.

Also in May, Thermo Fisher completed its $2.1 billion cash acquisition of Dionex Corp through a short-form merger.

"When you look at where we are from a portfolio perspective and balance sheet perspective, we're really excited about the two large transactions that we just did, so we're happy with what we've done, and we're focused and committed to delivering on that value," Casper said.

When asked whether the company would take on another sizable acquisition using equity or debt, the CEO said Thermo Fisher would consider anything that met its three acquisition criteria, but it would have to be a "no-brainer" for the company to proceed.

Thermo Fisher acquisition criteria include that any potential transaction must strengthen the company strategically, improve its offerings from a customer perspective and clearly create shareholder value.

Casper also said the company could allow its credit rating to migrate downward for the right opportunity, but it would not fall below investment-grade status.

"We're not as focused on the exact rating, but we want to be strong investment grade. We have an active dialogue with our ratings agencies and we'll operate within that expectation," he said.

The science technology company is based in Waltham, Mass.

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