WALTHAM, Mass., Dec. 21 /PRNewswire/ -- Thermo Electron Corporation (NYSE: TMO) announced today that it has completed the sale of its wholly owned Peek Ltd. business to First Atlantic Capital, Ltd. for approximately $117 million in cash and approximately $11 million in seller debt financing. In addition, the company announced it has signed separate definitive agreements, subject to customary conditions, to sell two other nonstrategic subsidiaries for a total of approximately $100 million in cash.
Thermo Electron has agreed to sell Coleman Research Corporation, a wholly owned systems engineering and integration business, for $60 million, plus an additional $5 million if certain performance targets are achieved in 2001. Separately, Thermo Electron has agreed to sell its wholly owned Killam Group Inc., a provider of comprehensive infrastructure engineering and outsourcing services, for approximately $40 million.
"With these transactions, we will have completed most of our divestiture program," said Richard F. Syron, chairman and chief executive officer of Thermo Electron. "We are pleased to be able to devote the proceeds to the new Thermo, investing in high-growth opportunities in our instruments business."
Thermo Electron is a leading provider of analytical and monitoring instruments used in a broad range of applications, from life sciences research to telecommunications to food, drug, and beverage production. In addition, Thermo Electron serves the healthcare market through a family of medical companies, and is a major producer of paper recycling systems and provides fiber-recovery products. As announced on January 31, 2000, the company has initiated a major reorganization that would transform it into one publicly traded entity focused on its core instruments business. The company's medical products and paper recycling businesses will be spun off as dividends to Thermo Electron shareholders. More information is available at http://www.thermo.com.
The following constitutes a "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward- looking statements that involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are set forth under the heading "Risk Factors" in the company's Amendment No. 2 to Registration Statement on Form S-4 [Reg. No. 333-35478] filed with the Securities and Exchange Commission on June 27, 2000. These include risks and uncertainties relating to: the company's ability to complete its corporate reorganization, the need for a favorable Internal Revenue Service ruling regarding planned spin-offs of certain subsidiaries, divestitures planned as part of the reorganization, integration of the instrument businesses, issuance of significant amounts of additional shares as part of the reorganization, liquidity and prospective performance of the subsidiaries to be spun off, guarantees of obligations of the subsidiaries to be spun off, stock price volatility, goodwill acquired by the company, internal growth, the effect of exchange rate fluctuations on the company's significant international operations, the need to develop new products and adapt to significant technological change, changes in governmental regulations, and dependence of demand on capital spending and government funding policies. SOURCE Thermo Electron Corporation
CONTACT: Investor: 781-622-1111 or Media: 781-622-1252 of Thermo Electron/