Dallas, Texas 07/23/2015 (Financialstrend) – Thermo Fisher Scientific Inc. (NYSE:TMO) is closing in on a deal that will see it acquire Alfa Aesar, a producer of raw materials used for research work as well as chemicals for $400 million. Based in Massachusetts, Alfa Aesar is a subsidiary of U.K based Johnson Matthey a maker of sustainable materials
Deal To Close In Q4
With a global network of operations, Alfar Aesar supplies more than 46,000 specialty chemicals to industries as well as academic institutions. Thermo Fisher Scientific Inc. (NYSE:TMO) will be acquiring an entity that has 480 employees with five standalone offices.
Should everything go as planned, Thomas Fisher expects the deal to close by year end. Alfa Aesar is to operate under Thomas Fisher products and service portfolio. However, it is unclear whether all the staff will be absorbed OR some will be let go.
Better Than Expected Q2 Earnings
The acquisition comes on the heels of the maker of scientific instruments posting better than expected quarterly profits. Second-quarter earnings came in at $511.6 million or $1.27 per share nearly double $278.5 million generated last year.
Revenues for the quarter fell short of expectations going down by 1.2% and coming in at $4.27billion. Profit, on the other hand, was helped by a 7.5% drop in costs as well as operating expenses compared to last year where earnings were weighed down by the acquisition of Life Technologies.
The company has since raised its revenue and profit forecast for the year citing favorable operating performance. Thermo Fisher Scientific Inc. (NYSE:TMO) had lowered its full-year revenue forecast in April citing adverse effects of foreign exchange rates
Thermo Fisher Scientific Inc. (NYSE:TMO) expects its 2015 revenue to fall in the range of between $16.72 billion and $16.86 billion against a prior guidance of between $16.67 billion and $16.83 billion. Thermos Fisher also raised its full-year profit forecast to $7.28 -$7.41 per share from an initial guidance of $7.25 to $7.40.