Thermo Fisher Scientific, the world’s leading maker of scientific instruments, said it is acquiring Dutch contract development and manufacturing organization (CDMO) Patheon NV for $7.2 billion, expanding its capabilities to become a one-stop shop for drug development and manufacturing services.

Patheon provides services to help biopharmaceutical companies of all sizes with their development and manufacturing needs. It is a leader in the high-growth, $40 billion CDMO market, which is fueled by growing customer demand for end-to-end solutions, flexible and scalable capacity, and regulatory expertise.

The CDMO has a network of state-of-the-art facilities primarily in North America and Europe, and approximately 9,000 professionals worldwide. The company generated 2016 revenue of approximately $1.9 billion and will become part of Thermo Fisher's Laboratory Products and Services Segment.

"Patheon's development and manufacturing capabilities are an excellent complement to our industry-leading offering for the biopharma market," said Marc Casper, president and chief executive officer, Thermo Fisher Scientific. "Our combined capabilities will enhance our unique value proposition for these customers, create significant value for our shareholders and further accelerate our company's growth."

James Mullen, chief executive officer, Patheon, said, "Over the past several years, we have increased our capabilities to become a leading CDMO provider in a highly fragmented market. We are confident that our combined offerings and Thermo Fisher's proven track record of disciplined M&A and successful integrations will take our business to the next level."