-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JNu+FLdu/EOxdV2J7ZD018qb9ZgeuMyTsB1fEtJ7cyyIsuYIN3fKe/dZcIl9Xlri wb2krlzsZZgECv3xYq6uow== 0000950135-00-000457.txt : 20000307 0000950135-00-000457.hdr.sgml : 20000307 ACCESSION NUMBER: 0000950135-00-000457 CONFORMED SUBMISSION TYPE: 425 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20000131 DATE AS OF CHANGE: 20000301 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: THERMEDICS INC CENTRAL INDEX KEY: 0000721356 STANDARD INDUSTRIAL CLASSIFICATION: 3590 IRS NUMBER: 042788806 STATE OF INCORPORATION: MA FISCAL YEAR END: 0102 FILING VALUES: FORM TYPE: 425 SEC ACT: SEC FILE NUMBER: 001-09567 FILM NUMBER: 526051 BUSINESS ADDRESS: STREET 1: 470 WILDWOOD ST STREET 2: P O BOX 2697 CITY: WOBURN STATE: MA ZIP: 01888-1799 BUSINESS PHONE: 7819383786 MAIL ADDRESS: STREET 1: 81 WYMAN STREET STREET 2: P.O. BOX 9046 CITY: WALTHAM STATE: MA ZIP: 02254 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: THERMO ELECTRON CORP CENTRAL INDEX KEY: 0000097745 STANDARD INDUSTRIAL CLASSIFICATION: 3829 IRS NUMBER: 042209186 STATE OF INCORPORATION: DE FISCAL YEAR END: 0102 FILING VALUES: FORM TYPE: 425 BUSINESS ADDRESS: STREET 1: 81 WYMAN ST STREET 2: P O BOX 9046 CITY: WALTHAM STATE: MA ZIP: 02454 BUSINESS PHONE: 7816221000 425 1 THERMEDICS INC 1 Filer: Thermo Electron Corporation Subject Company: Thermedics Inc. Subject Company Exchange Act File No.: 1-9567 Registration Statement No.: 333-____________ 2 [LOGO] Thermo Electron --------------------------------------------------- 3 THE NEW THERMO ELECTRON - - - - --------------------------------------------------------------------------- > Vision > Focus > Clarity > Growth 1 [LOGO] Thermo Electron 4 SHAREHOLDER VALUE - - - - --------------------------------------------------------------------------- Medical > Dividend Products Existing New > Stock > Thermo Electron Thermo Shareholders Thermo Fibertek > Dividend 2 [LOGO] Thermo Electron 5 OUR GOAL - - - - --------------------------------------------------------------------------- To channel all our resources - financial, human, technological - to become the preeminent instrument company in the world. 3 [LOGO] Thermo Electron 6 WHY INSTRUMENTS? - - - - --------------------------------------------------------------------------- > Critical mass > Strong market presence > Experienced management > Strong cash flow > Broad technology platform 4 [LOGO] Thermo Electron 7 THE PLAN - - - - --------------------------------------------------------------------------- > Sell businesses totaling $1.2 billion in revenues > Spin off equity of Thermo Fibertek and new Medical Products company > Spin in instrument companies 5 [LOGO] Thermo Electron 8 MAJOR DIVESTITURES - - - - --------------------------------------------------------------------------- > Thermo Cardiosystems > Trex Medical > Thermo TerraTech > Thermo Coleman > Peek 6 [LOGO] Thermo Electron 9 PLAN PROCEEDS - - - - --------------------------------------------------------------------------- Proceeds from Divestitures $ 1.0 BILLION Cost of Spin Ins $(0.4 BILLION) ------------- Net Increase in Cash $ 0.6 BILLION Invest all proceeds in new instrument company 7 [LOGO] Thermo Electron 10 SPIN OFFS - - - - --------------------------------------------------------------------------- > Market leadership > Experienced management > Independent market identities > Balanced product mix > Strong growth prospects 8 [LOGO] Thermo Electron 11 MEDICAL PRODUCTS - - - - --------------------------------------------------------------------------- Thermo Biomedical Thermedics Medical 1999E Revenues: $335 million 9 [LOGO] Thermo Electron 12 MEDICAL PRODUCTS - - - - --------------------------------------------------------------------------- [Collage of photos representing the various businesses within the new Medical Products company, including neurodiagnostic testing, respiratory care, infant, audiology products, wireless patient monitoring, and medical polymers.] 10 [LOGO] Thermo Electron 13 THERMO FIBERTEK - - - - --------------------------------------------------------------------------- Thermo Fibertek Thermo Fibergen 1999E Revenues: $225 million 11 [LOGO] Thermo Electron 14 THERMO FIBERTEK - - - - --------------------------------------------------------------------------- [Collage of photos representing the various businesses within the new Thermo Fibertek company, including papermaking and recycling equipment, water-management systems, waste-recovery, and fiber-based consumer products and composites.] 12 [LOGO] Thermo Electron 15 THERMO ECOTEK - - - - --------------------------------------------------------------------------- > Non-core asset > Maximize value > Goal: spin off in 1-2 years 13 [LOGO] Thermo Electron 16 - - - - --------------------------------------------------------------------------- Thermo Electron will be a completely focused instrument company in 2001 14 [LOGO] Thermo Electron 17 THERMO INSTRUMENT REVENUES - - - - --------------------------------------------------------------------------- (in millions) [Bar chart (without actual revenue numbers) showing increasing revenues from the Thermo Instrument business from 1986 to 1999 estimate, indicating in 1998 actual revenues of $1.66 billion.] 15 [LOGO] Thermo Electron 18 THERMO INSTRUMENT EBITDA - - - - --------------------------------------------------------------------------- (in thousands) [Bar chart (without actual EBITDA numbers) showing increasing EBITDA for the Thermo Instrument business from 1986 to 1999 estimate, indicating in 1998 actual EBITDA of $294 million.] 16 [LOGO] Thermo Electron 19 THERMO INSTRUMENT STOCK PRICE - - - - --------------------------------------------------------------------------- (adjusted for splits) [Line graph generally illustrating range of Thermo Instrument stock price (without providing specific stock prices) from 1986 to present ranging from approximately $2.00 per share to approximately $36.00 per share during the time period shown.] 17 [LOGO] Thermo Electron 20 GROWTH PLAN 2000 - - - - --------------------------------------------------------------------------- > Manage according to market served > New incentives for managers > Divest of slow-growth units > Continue strategic acquisitions > Initiate e-commerce 18 [LOGO] Thermo Electron 21 OLD ORGANIZATION - - - - --------------------------------------------------------------------------- [Graphic of partial depiction of old organizational chart of Thermo Instrument Systems.] 19 [LOGO] Thermo Electron 22 NEW ORGANIZATION - - - - --------------------------------------------------------------------------- 1999E Revenues: $2.3 billion Life Measurement Sciences Photonics and Control 1999E Revenues 1999E Revenues 1999E Revenues $800 million $800 million $700 million 20 [LOGO] Thermo Electron 23 LIFE SCIENCES - GOALS - - - - --------------------------------------------------------------------------- > Internal revenue growth >10% > R&D commitment 8-10% > Technology acquisitions > Maintain 16% ROS 21 [LOGO] Thermo Electron 24 PHOTONICS - GOALS - - - - --------------------------------------------------------------------------- > Internal revenue growth 7-8% > R&D commitment - Telecom >10% - Balance 7% > Instrument acquisitions > Maintain strong cash flow > Improve ROS to 13% 22 [LOGO] Thermo Electron 25 MEASUREMENT AND CONTROL - GOALS - - - - --------------------------------------------------------------------------- > Internal revenue growth 4-5% > R&D commitment 4-5% > Double ROS to 10% > Focus on cash flow > Divestitures 23 [LOGO] Thermo Electron 26 NEW INCENTIVES FOR MANAGERS - - - - --------------------------------------------------------------------------- > New bonus plan - Growth - Cash - Combination > Increase cash compensation > Continue options in parent 24 [LOGO] Thermo Electron 27 DIVEST SLOW-GROWTH UNITS - - - - --------------------------------------------------------------------------- > Detailed review of measurement and control sector > Sale of - Gould - NIS - Pharos Marine 25 [LOGO] Thermo Electron 28 RECENT ACQUISITIONS - - - - --------------------------------------------------------------------------- Spectra Physics AB Feb. 1999 BioStar Nov. 1998 - - - - ----------------------------- ----------------------------- Laser-based instruments Point-of-Care Diagnostics ----------------------------- Purchase Price $351M Current Market Value SPLI $450-500M Other $350M Interactiva Oct. 1999 FLIR $ 70M ----------------------------- - - - - ----------------------------- Biochips - e-commerce Total Value $870-920M ----------------------------- 26 [LOGO] Thermo Electron 29 EBUSINESS - WWW.INFORMATION2.NET - - - - --------------------------------------------------------------------------- Competitive Advantages > Leverage knowledge assets > Breadth of "touch points" > Mining: metals to genomes > One-to-one marketing 27 [LOGO] Thermo Electron 30 WELL-POSITIONED VS. COMPETITORS - - - - --------------------------------------------------------------------------- [Segmented bar chart showing how Thermo Instrument and its competitors compare in terms of the industries they serve.] Source McKinsey & Co. Thermo Instrument Life Sciences 40% Communications 9% Environmental 17% Industrial 34% Agilent Life Sciences 7% Communications 50% Environmental 5% Non Instrument 38% Waters Life Sciences 60% Environmental 40% Varian Life Sciences 35% Environmental 35% Non Instrument 30% Perkin Elmer Life Sciences 22% Environmental 13% Industrial 26% Non Instrument 39% 28 [LOGO] Thermo Electron 31 VALUATION - - - - --------------------------------------------------------------------------- EV/EBITDA [Bar chart showing how Thermo Instrument has been valued by industry analysts in terms of EV/EBITDA compared to its competitors based on trailing 12 months EBITDA.] Source: Industry Analysts Chart reflects ratio of EV (Enterprise Value)/EBITDA as follows: THI 8.0 Agilent 24.0 Waters 19.3 Varian 20.2 Perkin Elmer 12.0 Mean 18.9 29 [LOGO] Thermo Electron 32 INSTRUMENTS PROVIDE KNOWLEDGE - - - - --------------------------------------------------------------------------- You cannot improve and control unless you can measure and detect 30 [LOGO] Thermo Electron 33 OLD STRUCTURE - - - - --------------------------------------------------------------------------- [Graphic showing the old corporate structure of Thermo Electron indicating Thermo Electron subsidiaries with minority investors as follows:] Thermo Electron Thermo Instrument Thermo Quest ONIX Systems Thermo Spectra Thermo Optek Thermo BioAnalysis Metrika Systems Thermo Vision Thermo Coleman Thermo Information Solutions Thermo Biomedical Thermo Ecotek Thermo Trilogy Thermedics Thermo Sentron Thermedics Detection Thermo Cardiosystems Thermo Voltek Thermo Trex Trex Medical Trex Communications ThermoLase Thermo Fibertek Thermo Fibergen Thermo Power Thermolyte Thermo Terra Tech The Randers Group Thermo EuroTech Thermo Retec 31 [LOGO] Thermo Electron 34 NEW STRUCTURE - - - - --------------------------------------------------------------------------- The term Thermo Electron superimposed over image of man looking through a telescope, representing new Thermo corporate structure. 32 [LOGO] Thermo Electron 35 THE NEW THERMO ELECTRON - - - - --------------------------------------------------------------------------- > Market focus > Simple structure > Tightly managed > Dedicated resources 33 [LOGO] Thermo Electron 36 OTHER IMPORTANT INFORMATION: THE PREVIOUSLY ANNOUNCED EXCHANGE OFFER HAS NOT YET COMMENCED. AS SOON AS WE COMMENCE OUR EXCHANGE OFFER FOR THERMEDICS, WE WILL FILE A TENDER OFFER STATEMENT AND REGISTRATION STATEMENT ON FORM S-4 WITH THE SEC. YOU SHOULD READ EACH OF THESE DOCUMENTS WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. YOU CAN OBTAIN THE TENDER OFFER STATEMENT, REGISTRATION STATEMENT, AND OTHER DOCUMENTS THAT ARE FILED WITH THE SEC FOR FREE WHEN THEY ARE AVAILABLE ON THE SEC'S WEB SITE AT http://www.sec.gov. IF YOU WRITE US OR CALL US, WE WILL SEND YOU THESE DOCUMENTS FOR FREE WHEN THEY ARE AVAILABLE, AS APPLICABLE TO THE PARTICULAR TRANSACTION: * TENDER OFFER STATEMENT (EXCEPT FOR EXHIBITS) * REGISTRATION STATEMENT ON FORM S-4 * OFFER TO PURCHASE * LETTER OF TRANSMITTAL * NOTICE OF GUARANTEED DELIVERY -more- 37 Thermo Electron Corporation 6 YOU CAN CALL US AT (781) 622-1111 OR WRITE TO US AT: INVESTOR RELATIONS DEPARTMENT THERMO ELECTRON CORPORATION 81 WYMAN STREET, P.O. BOX 9046 WALTHAM, MA 02454-9046 IN ADDITION, THE TENDER OFFERS TO BE CONDUCTED BY THERMO INSTRUMENT FOR THERMO BIOANALYSIS, METRIKA SYSTEMS, AND ONIX SYSTEMS, AND BY THERMEDICS FOR THERMEDICS DETECTION AND THERMO SENTRON, AS DESCRIBED IN THIS ANNOUNCEMENT, HAVE NOT YET COMMENCED. AS SOON AS THOSE TENDER OFFERS COMMENCE, THERMEDICS AND THERMO INSTRUMENT, RESPECTIVELY, WILL FILE TENDER OFFER STATEMENTS JOINTLY WITH THERMO ELECTRON WITH THE SEC. YOU SHOULD READ THE TENDER OFFER STATEMENTS WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE TENDER OFFERS. YOU CAN OBTAIN THE TENDER OFFER STATEMENTS AND OTHER DOCUMENTS THAT ARE FILED WITH THE SEC FOR FREE WHEN THEY ARE AVAILABLE ON THE SEC'S WEB SITE AT http://www.sec.gov. IF YOU WRITE US OR CALL US AT THE ABOVE ADDRESS OR PHONE NUMBER, WE WILL SEND YOU THESE DOCUMENTS FOR FREE WHEN THEY ARE AVAILABLE: * TENDER OFFER STATEMENTS (EXCEPT FOR EXHIBITS) * OFFERS TO PURCHASE * LETTERS OF TRANSMITTAL * NOTICES OF GUARANTEED DELIVERY -----END PRIVACY-ENHANCED MESSAGE-----