M&A · Healthcare · Services-Commercial Physical & Biological Research
Thermo Fisher Scientific Inc. to acquire PPD, Inc.
Announced Apr 15, 2021 · Closed Dec 8, 2021
Deal value$17.40BEV $20.16B
Premium24.0%To unaffected price
EV / Adj. EBITDA24.9x4.3x EV / Revenue
ConsiderationAll cash$47.50 per share
Transaction
- Acquirer
- Thermo Fisher Scientific Inc. (TMO)
- Target
- PPD, Inc. (PPD)
- Buyer type
- Strategic
- Offer price per share
- $47.50
- Enterprise value
- $20.16B
- Status
- Closed Dec 8, 2021
Deal protections
- Break fee (target pays)
- $520M · 3.0%
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- Committed · Morgan Stanley, Barclays
Advisors
- To the acquirer
- Barclays, Morgan Stanley
- To the target
- JPMorgan
- JPMorgan fee
- $73.0M
Sector context · Healthcare
- Comparable deals
- 15 in the prior 24 months
- Premium
- 24.0% vs. 48.9% sector median
- EV / Adj. EBITDA
- 24.9x vs. 15.4x sector median
- Break fee
- 3.0% vs. 3.3% sector median
Timeline
- AnnouncedApr 15, 2021
- Proxy filedMay 14, 2021
- Definitive proxyMay 25, 2021
- Shareholder vote—
- ClosedDec 8, 2021
Valuation · fairness opinions
Trading comparables$34.00$41.50
Trading comparables$35.50$43.50
Trading comparables$28.50$39.00
Precedent transactions$20.75$48.50
Discounted cash flow$34.50$52.00
Offer $47.50
Implied value per PPD, Inc. share by analysis, from JPMorgan · DCF discount rate 7.5%–8.5%.