Global healthcare firm PHC Holdings has agreed to acquire anatomical pathology business from Thermo Fisher Scientific for around $1.14bn.

architectural details of new Thermo Fisher Scientific HQ in Waltham, MA 02451

Image: PHC Holdings to acquire anatomical pathology business from Thermo Fisher Scientific. Photo: courtesy of Thermo Fisher Scientific.

Part of Thermo Fisher’s specialty diagnostics segment, the anatomical pathology business supplies microscope slides, instruments and consumables to its customers in the industry.

With around 1,200 employees, the anatomical pathology business carries out operations in the US, Europe and China.

Thermo Fisher’s anatomical pathology business is said to generate around $350m in annual revenue.

PHC provides value-added products and services across diabetes care, diagnostics, life sciences and healthcare IT. The company acquired Thermo Fisher’s business to expand its business portfolio and achieve further business growth.

Subject to customary closing conditions and the receipt of applicable regulatory approvals, PHC intends to complete the deal in the second quarter of this year.

Thermo Fisher is anticipating the net dilution to 2019 adjusted earnings per share to be around $0.10 and will be integrated into its 2019 financial guidance.

PHC Holdings CEO Hidehito Kotani said: “We are pleased to have signed the agreement with Thermo Fisher Scientific. Their anatomical pathology business has shown steady growth with their strong customer base in global hospital markets, especially in the United States.

“This is a solid business with good growth potential and we believe it will create value for our stakeholders as part of our growing diagnostics and healthcare portfolio.”

In September, Thermo Fisher Scientific agreed to acquire Advanced Bioprocessing business from Becton, Dickinson and Company (BD).

Thermo Fisher said the Advanced Bioprocessing combines its technical services with a variety of peptones that enhance cell culture media formulations to improve yield and reduce variability in biopharmaceutical applications.

PHC Holdings, which manages subsidiaries such as PHC Corporation and Ascensia Diabetes Care Holdings, is engaged in the development, manufacturing, marketing and servicing of medical equipment and solutions.

With around 70,000 employees across the globe, Thermo Fisher Scientific offers products and services through its premier brands such as Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific and Unity Lab Services.