Thermo Fisher To Buy Alesco's Biolab For $120 Million

   DOW JONES NEWSWIRES 
 

Thermo Fisher Scientific Inc. (TMO) Monday said it will buy analytical instruments and lab-equipment provider Biolab for $120 million (A$175 million) as it looks to expand in the Australia, New Zealand and South Pacific region.

The move comes after lab-supply company Thermo Fisher reported last week that first-quarter net income fell 35% on restructuring charges and falling margins as it cut its full-year guidance.

Lab-supply companies, typically rather resilient in a recession, have seen sales slow amid cuts to research and capital-spending budgets. The recession is also drying up donations and endowments that help fuel university laboratories.

Thermo Fisher also supplies one of the most vulnerable big-ticket items - mass spectrometers, which are used to identify the chemical compounds of samples and cost thousands of dollars.

Chief Executive Marijn E. Dekkers said the acquisition of Biolab, which is the scientific and medical division of Alesco Corp. (ALS.AU), would "significantly" boost Thermo Fisher's presence in the Australian, New Zealand and South Pacific markets.

Thermo Fisher expects the deal to close Thursday, April 30. Its shares closed Friday at $33.15 and haven't traded premarket.

-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; [e-mail]