Thermo confirmed the takeover plan today, just hours after Bloomberg reported the firms were in talks.
Thermo said it will finance the purchase price with debt of $5.2bn and $2bn in equity.
The firm cited Patheon's small and large molecule contract manufacturing capacity, network of production plants and 9,000 staff as the driver for the deal. The Netherlands-headquartered contractor will become part of Thermo Fisher's Laboratory Products and Services Segment.
DSM, which owns 48.7m shares in Patheon, said the deal is expected to close before the end of the year.
Evercore ISI analyst Ross Muken was positive about the deal, explaining that Patheon “has unique leverage to the high growth pharma bio-processing end market, which Thermo already services on the product side.”
He added that: “Thermo brings unique relationships and market share at major BioPharma and Emerging Pharma which should synergize Patheon’s one stop shop approach.”
See how the deal will impact Thermo here.