Thermo Fisher to fund acquisition with $1.3 billion of new notes

By Lisa Kerner

Charlotte, N.C., July 16 - Thermo Fisher Scientific Inc. will use a combination of cash on hand and new debt financing to acquire One Lambda, Inc. for $925 million, said Marc N. Casper, president and chief executive officer of Thermo Fisher, during a conference call on Monday.

Specifically, Thermo Fisher expects to issue $1.3 billion of new senior notes, according to discussions during the question-and-answer period of Monday's call.

New debt will also be used to fund the recently authorized repurchase of an additional $500 million of shares of Thermo Fisher's common stock in the open market or in negotiated transactions through Dec. 31.

As of June 30, the company had $250 million remaining under its existing share repurchase authorization, which expires Nov. 9.

With the new debt, Thermo Fisher expects its pro forma leverage ratio to be between 2.5 and 3 times its 12-month trailing adjusted EBITDA by the end of the year.

"Our business generates a lot of cash flow, so I am comfortable that we'll maintain good flexibility on our balance sheet," chief financial officer Peter M. Wilver said on the call.

The transaction is expected to be completed in the fourth quarter of 2012 subject to approvals and the satisfaction of customary closing conditions.

Thermo Fisher is a science technology company based in Waltham, Mass.

One Lambda makes HLA typing and antibody detection assays and is located in Canoga Park, Calif.

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