CONCORD, N.H. — Fisher Scientific International Inc., one of the world's biggest wholesale distributors of scientific equipment, said Wednesday it will buy Apogent Technologies Inc., a maker of lab equipment, for $2.68 billion in stock.
Both companies are based in New Hampshire. Fisher, headquartered in Hampton, said the combination will bolster its presence in the high-growth medical and biotechnology market.
Talk of a merger has been going on for some time, but serious discussion of the sale began only in last 30 to 60 days, said Paul M. Montrone, Fisher's chairman and CEO.
The deal "will create a more integrated and efficient global supply network for our customers" and enhance growth, Montrone said.
Under the merger, Fisher would have exclusive rights to 60 percent of its products, up from 40 percent. That means most products the company sells would be home-grown, Montrone said.
Frank H. Jellinek Jr., president and CEO of Portsmouth-based Apogent Technologies, said his company's customers, workers and shareholders will benefit from "the exciting potential" created by the merger.
Shareholders of Apogent will own 43 percent of the combined company under the terms of the agreement, which also calls for Fisher to assume $980 million in Apogent debt.
"We don't believe the acquisition is going to disrupt the market or be unduly penal to its customers or suppliers," said Alexander Draper, an analyst with Deutsche Bank Securities. "It's expected to be a profitable transaction for Fisher. It certainly dramatically enhances their size and market share position."
Fisher's management will keep their positions, while Jellinek will serve as chairman emeritus of Fisher. Four members of Apogent's board, including Jellinek, will join Fisher's 10-member board.
Under the terms of the agreement, each Apogent share will be exchanged for 0.56 Fisher Scientific share. The deal was worth $2.7 billion when it was announced.
Fisher's stock fell 22 cents Wednesday to close at $52.10 on the New York Stock Exchange, putting the value of the merger at $2.68 billion. The deal now values each Apogent share at $29.18, a premium to the stock's closing price Wednesday of $28.85. It rose $1.07, or 3.8 percent.
The companies expect to close the deal early in the third quarter.
Fisher expects to achieve cost cuts and revenue enhancements — worth about $55 million in 2005, and up to $100 million annually by the end of 2006.
"These two companies know each other well," Fisher vice chairman Paul M. Meister said. "As a result of this, we have a high degree of confidence in our ability to achieve these savings."