Thermo Fisher Considers Sale of $1 Billion Pathology Unit

(Bloomberg) -- Thermo Fisher Scientific Inc., the maker of diagnostic and testing equipment, is considering a sale of its anatomical pathology unit in a deal that could fetch about $1 billion, people with knowledge of the matter said.

The Massachusetts-based company is working with an adviser to run a sale process for the unit, which makes instruments including morgue and autopsy equipment, according to the people. Thermo Fisher is reaching out to private equity firms and other companies to gauge interest, the people said, asking not to be identified because the information is private.

Thermo Fisher, with a market value of about $94 billion, has expanded in recent years via acquisitions to become one of the world’s biggest makers of diagnostic equipment. It bought Patheon NV for about $5 billion last year and purchased electron microscope maker FEI Co. for more than $4 billion in 2016, data compiled by Bloomberg show.

A representative for Thermo Fisher declined to comment.

The pathology unit generates about $85 million in annual earnings before interest, taxes, depreciation and amortization, the people said. It makes a range of equipment for studying and diagnosing diseases, including specimen containers, microscope slides and higher-tech instruments like centrifuges, its website shows.

--With assistance from Ruth David.

To contact the reporters on this story: Manuel Baigorri in Hong Kong at mbaigorri@bloomberg.net;Kiel Porter in New York at kporter17@bloomberg.net

To contact the editors responsible for this story: Ben Scent at bscent@bloomberg.net, ;Elizabeth Fournier at efournier5@bloomberg.net, Timothy Sifert

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