Thermo Fisher to buy Patheon in $5.2 billion deal

Scientific instrument maker Thermo Fisher Scientific Inc. is buying Dutch drug ingredients maker Patheon for US$5.2 billion, in a bid to expand its contract drug development and manufacturing business.

In a statement, Waltham, Mass.-based Thermo Fisher said it will benefit from Patheon’s drug manufacturing abilities as drugmakers increasingly try to cut costs and reduce clinical trial times.

Patheon, which had 2016 revenue of approximately $1.9 billion, will become part of Thermo Fisher’s laboratory products and services unit.

In a statement, Thermo Fisher said it expects to realize cost-saving synergies of about US$120 million at the end of three years, as there is little direct overlap in the two companies.

The transaction is expected to be completed by the end of 2017.