Thermo Fisher Diagnostics Divests Units

Thermo Fisher Scientific Inc. has inked deals to sell its Athena Diagnostics and Lancaster Laboratories businesses for a combined $940 million.

The move comes as theWaltham, Mass.-based laboratory-supply company is in the middle of a $2.1 billion buyout of laboratory-equipment maker Dionex Corp.

Thermo Fisher sells products ranging from analytical instruments to lab equipment and services to labs and research operations. The company’s profit has improved lately as it has seen mostly better sales and improved margins, according to recent financial statements.

Thermo agreed to sell Athena to Quest Diagnostics Inc. in Madison, N.J., for $740 million.

Quest’s CEO Surya N. Mohapatra said the deal would establish his firm as “the clear leader” in esoteric and genetic testing for neurology. The deal is expected to add to Quest earnings starting next year.

“We expect to further accelerate Athena’s growth by supplementing its specialty sales organization with Quest Diagnostics’ extensive sales force, to sell into our broader customer base,” said Mohapatra. “Strategically, we believe Athena will be the principal beneficiary of the accelerated demand for diagnostic testing as new and earlier therapies are developed for neurological conditions such as Alzheimer’s disease.”

Thermo sold Lancaster Laboratories to Brussels-based Eurofins Scientific SE for $200 million. Lancaster and Eurofins are a contract-testing laboratories that serve drugmakers and environmental-sciences concerns.

Thermo Fisher’s President and CEO Marc N. Casper said the deals, which are expected to close in the second quarter, will “generate significant proceeds that we can redeploy to create shareholder value.”

Thermo’s 2011 guidance didn’t include expected impacts from the deals. The company said that assuming the Dionex acquisition also closes in the second quarter, the two divestitures, Dionex and the stock buyback could add five cents a share to Thermo’s 2011 results. The company’s board also approved a $750 million stock buyback.