FISHER SCIENTIFIC TO ACQUIRE PHARMACEUTICAL PACKAGING SERVICES BUSINESS FROM COVANCE INC. FOR $137.5 MILLION
Fisher Expands Outsourcing Service Capabilities; Covance Pursues Strategic Repositioning
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Hampton, N.H., and Princeton, N.J., Dec. 26 — Fisher Scientific International Inc. (NYSE: FSH), the world leader in serving science, and Covance Inc. (NYSE: CVD), one of the world's largest and most comprehensive drug development services companies, today announced that Fisher will acquire the Covance Pharmaceutical Packaging Services business (CPPS) in a cash transaction for $137.5 million. Fisher will fund the acquisition with cash-on-hand and available credit facilities. Closing of the transaction, which is subject to customary conditions and regulatory approvals, is anticipated in the first quarter of 2001.
CPPS is a worldwide, leading provider of contract packaging services for clinical trials to major pharmaceutical and biotechnology companies, with state-of-the-art manufacturing and packaging facilities in Allentown, Pa.; Basel, Switzerland; and Horsham, U.K. The CPPS acquisition is a natural extension of Fisher's current service offerings to pharmaceutical and biotechnology companies, which include contract manufacturing of final dosage and formulation of pharmaceutical, diagnostic and biotech products; custom synthesis for drug discovery; and manufacturing and sourcing of fine, organic and synthetic chemicals. Fisher also is the leading worldwide supplier of virtually all the products, supplies and equipment necessary to operate a research laboratory.
"The Covance Pharmaceutical Packaging Services business is the preeminent provider of specialized outsourced contract services to leading pharmaceutical and biotechnology companies worldwide," said Paul M. Montrone, chairman and chief executive officer of Fisher Scientific. "The addition of CPPS to Fisher's expanding line of outsourced manufacturing, logistics and e-commerce services to major pharmaceutical and biotechnology companies will enhance Fisher's existing strategic relationships and fuel further growth."
Chris Kuebler, chairman and CEO of Covance Inc., added, "With this divestiture, Covance can focus more resources on opportunities consistent with our strategy to significantly reduce the time and cost of drug development through the provision of drug development data to sponsors in close to real time. In addition, this move enables us to substantially reduce the company's leverage going forward."
Covance estimates its net proceeds from the transaction will be in the $110 million to $115 million range, and will use the net proceeds to repay debt. Lazard Freres & CO. LLC represented Covance in connection with this transaction.
Fisher Scientific International Inc.
As the world leader in serving science, Fisher Scientific (www.fishersci.com) is the global source of laboratory supplies and equipment, e-commerce procurement technology and related services for research, healthcare, science education and occupational safety. Alchematrix (www.alchematrix.com), a business-to-business e-commerce subsidiary of Fisher Scientific, incorporates all of the capabilities and functionalities of fishersci.com, the world's largest and most comprehensive virtual marketplace for buying scientific supplies.
Covance Inc.
Covance, with headquarters in Princeton, N.J., is one of the world's largest and most comprehensive drug development services companies with 1999 revenues of $829 million, operations currently in 17 countries, and approximately 7,900 employees worldwide. Pro forma income statements excluding financial results for Covance's packaging business for the full year 2000 will be available post closing of the transaction.
This announcement includes forward-looking statements. Fisher Scientific and Covance have based these forward-looking statements on their current expectations and projections about future events. Although Fisher Scientific and Covance believe that their assumptions made in connection with the forward-looking statements are reasonable, no assurances can be given that their assumptions and expectations will prove to have been correct. These forward-looking statements are subject to various risks, uncertainties and assumptions, including the assumption that the transaction will close as anticipated. Fisher Scientific and Covance undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this announcement might not occur. |
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