Thermo Fisher To Sell Cole-Parmer To Private Equity Firm GTCR For $480 Mln

(RTTNews) - Laboratory equipment maker Thermo Fisher Scientific Inc. (TMO) said Thursday that it has agreed to sell Cole-Parmer Instrument Co. to private equity firm GTCR LLC for $480 million in cash.

Vernon Hills, Illinois-based Cole-Parmer is a provider of fluid handling, test and measurement, as well as electrochemistry products and services. Cole-Parmer, founded in 1955, has 400 employees globally. The business, part of Thermo Fisher's Laboratory Products and Services segment, had revenues of about $230 million for full year 2013.

Cole-Parmer owns brands such as Masterflex, Oakton and Digi-Sense. Its products are sold through company-owned customer channel outlets and a network of international dealers.

Waltham, Massachusetts-based Thermo Fisher expects the transaction to close in the third quarter and anticipates the transaction to have an immaterial impact to its 2014 adjusted earnings per share. The company will update annual guidance in its second-quarter earnings release on July 23.

Founded in 1980, GTCR is a Chicago-based private equity firm focused on investing in growth companies in the Financial Services & Technology, Healthcare and Information Services & Technology industries. Since its inception, GTCR has invested more than $10 billion in over 200 companies.

In a separate statement, GTCR said that its investment in Cole-Parmer will be funded from GTCR Fund XI, a private equity fund raised in 2014 with $3.85 billion of limited partner equity capital commitments.

Commenting on the acquisition, Dean Mihas, Managing Director at GTCR said, "We believe Cole-Parmer's strong reputation, management team and portfolio of leading brands provides a unique position within the diverse end-markets it serves. GTCR looks forward to investing in the business and building a leading company within the life sciences and lab supply industry."

Credit Suisse served as financial advisor to GTCR and will provide financing for the transaction. Kirkland & Ellis LLP served as legal counsel to GTCR.

TMO is trading at $120.51, up $1.29 or 1.08 percent on a volume of 897,751 shares.