Thermo Fisher Sells Anatomical Pathology Business to PHC Holdings for $1.14 Billion

VCBeat (WeChat Official Account: vcbeat) learned from foreign media reports that Thermo Fisher Scientific, the world’s largest manufacturer of scientific instruments, announced on January 29, 2019 (local time) that it would sell its anatomical pathology business to Japan’s PHC Holdings Corp. for $1.14 billion in cash. The transaction is expected to close in the second quarter of this year.

Public information indicates that the pathology division of Thermo Fisher Scientific primarily sells microscope slides, centrifuges, and other instruments used for disease diagnosis, generating annual revenue of approximately $350 million. Following the completion of the sale, Thermo Fisher Scientific’s earnings per share are expected to be diluted by approximately $0.10.

Thermo Fisher Scientific Inc. (NYSE: TMO) is a global leader in the field of scientific services. With annual sales of $17 billion, the company employs approximately 50,000 people across 50 countries. Its primary customers include pharmaceutical and biotechnology companies, hospitals and clinical diagnostic laboratories, universities, research institutions, government agencies, as well as manufacturers of environmental and industrial process control equipment. Leveraging its four premier brands—Thermo Scientific, Life Technologies, Fisher Scientific, and Unity™ Lab Services—Thermo Fisher Scientific helps customers address various challenges in analytical chemistry. The company provides comprehensive laboratory solutions encompassing high-end analytical instruments, laboratory equipment, software, services, consumables, and reagents.

PHC Holdings Corporation is a healthcare holding company established in 2014, with its headquarters in Tokyo, Japan. Through its subsidiaries, PHC Holdings Corporation develops, manufactures, and sells in vitro diagnostic equipment and medical support devices. The company provides biosensor-based diagnostic devices to individual households and medical institutions, including blood glucose monitoring systems, lactate monitoring systems, lancing device systems, and electronic growth hormone injectors. Its flagship products include medical receipt computers and electronic medical record (EMR) systems under its healthcare IT business.

Through this transaction, Thermo Fisher Scientific will strengthen its business collaboration with PCH Holdings Corp., and the two companies are poised to achieve new breakthroughs in the medical device sector.

VCBeat (WeChat Official Account: vcbeat) will continue to monitor and report on the subsequent developments of this transaction.

(Compiled by Hu Xuan)