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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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SCHEDULE TO
TENDER OFFER STATEMENT UNDER SECTION 14(d)(1) OR 13(e)(1)
OF THE SECURITIES EXCHANGE ACT OF 1934
Thermo BioAnalysis Corporation
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(Name of Subject Company (Issuer))
Thermo Instrument Systems Inc. (Offeror)
Thermo Electron Corporation (Affiliate of Offeror)
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(Names of Filing Persons (Identifying Status as Offeror, Issuer
or Other Person))
Common Stock, $.01 par value
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(Title of Class of Securities)
88355H 10 8
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(CUSIP Number of Class of Securities)
Seth H. Hoogasian, Esq.
General Counsel
c/o Thermo Electron Corporation
81 Wyman Street
Waltham, Massachusetts 02454-9046
(781) 622-1000
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(Name, Address, and Telephone Number of Person Authorized to Receive Notices and
Communications on Behalf of Filing Persons)
CALCULATION OF FILING FEE
- --------------------------------------------------------------------------------
Transaction Valuation* Amount of Filing Fee
- --------------------------------------------------------------------------------
Filing relates solely to preliminary communications made None.
before the commencement of a tender offer.
- --------------------------------------------------------------------------------
* Set forth the amount on which the filing fee is calculated and state how it
was determined.
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[ ] Check the box if any part of the fee is offset as provided by Rule
0-11(a)(2) and identify the filing with which the offsetting fee was previously
paid. Identify the previous filing by registration statement number, or the Form
or Schedule and the date of its filing.
Amount Previously Paid: _____________
Form or Registration No.: _____________
Filing Party: ________________________
Date Filed: _________________________
[X] Check the box if the filing relates solely to preliminary communications
made before the commencement of a tender offer.
Check the appropriate boxes below to designate any transactions to which the
statement relates:
[X] third-party tender offer subject to Rule 14d-1.
[X] issuer tender offer subject to Rule 13e-4.
[X] going-private transaction subject to Rule 13e-3.
[ ] amendment to Schedule 13D under Rule 13d-2.
Check the following box if the filing is a final amendment reporting the results
of the tender offer: [ ]
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[LOGO] Thermo Electron
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THE NEW THERMO ELECTRON
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> Vision
> Focus
> Clarity
> Growth
1 [LOGO] Thermo Electron
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SHAREHOLDER VALUE
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Medical > Dividend
Products
Existing
New > Stock > Thermo Electron
Thermo Shareholders
Thermo
Fibertek > Dividend
2 [LOGO] Thermo Electron
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OUR GOAL
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To channel all our resources -
financial,
human,
technological -
to become the preeminent
instrument company in the world.
3 [LOGO] Thermo Electron
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WHY INSTRUMENTS?
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> Critical mass
> Strong market presence
> Experienced management
> Strong cash flow
> Broad technology platform
4 [LOGO] Thermo Electron
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THE PLAN
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> 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
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MAJOR DIVESTITURES
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> Thermo Cardiosystems
> Trex Medical
> Thermo TerraTech
> Thermo Coleman
> Peek
6 [LOGO] Thermo Electron
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PLAN PROCEEDS
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Proceeds from Divestitures $ 1.0 BILLION
Cost of Spin Ins $(0.4 BILLION)
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Net Increase in Cash $ 0.6 BILLION
Invest all proceeds in
new instrument company
7 [LOGO] Thermo Electron
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SPIN OFFS
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> Market leadership
> Experienced management
> Independent market identities
> Balanced product mix
> Strong growth prospects
8 [LOGO] Thermo Electron
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MEDICAL PRODUCTS
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Thermo Biomedical
Thermedics Medical
1999E Revenues: $335 million
9 [LOGO] Thermo Electron
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MEDICAL PRODUCTS
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[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
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THERMO FIBERTEK
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Thermo Fibertek
Thermo Fibergen
1999E Revenues: $225 million
11 [LOGO] Thermo Electron
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THERMO FIBERTEK
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[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
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THERMO ECOTEK
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> Non-core asset
> Maximize value
> Goal: spin off in 1-2 years
13 [LOGO] Thermo Electron
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Thermo Electron will be
a completely focused
instrument company in 2001
14 [LOGO] Thermo Electron
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THERMO INSTRUMENT REVENUES
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(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
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THERMO INSTRUMENT EBITDA
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(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
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THERMO INSTRUMENT STOCK PRICE
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(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
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GROWTH PLAN 2000
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> Manage according to market served
> New incentives for managers
> Divest of slow-growth units
> Continue strategic acquisitions
> Initiate e-commerce
18 [LOGO] Thermo Electron
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OLD ORGANIZATION
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[Graphic of partial depiction of old organizational chart of Thermo Instrument
Systems.]
19 [LOGO] Thermo Electron
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NEW ORGANIZATION
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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
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LIFE SCIENCES - GOALS
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> Internal revenue growth >10%
> R&D commitment 8-10%
> Technology acquisitions
> Maintain 16% ROS
21 [LOGO] Thermo Electron
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PHOTONICS - GOALS
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> 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
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MEASUREMENT AND CONTROL - GOALS
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> Internal revenue growth 4-5%
> R&D commitment 4-5%
> Double ROS to 10%
> Focus on cash flow
> Divestitures
23 [LOGO] Thermo Electron
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NEW INCENTIVES FOR MANAGERS
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> New bonus plan
- Growth
- Cash
- Combination
> Increase cash compensation
> Continue options in parent
24 [LOGO] Thermo Electron
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DIVEST SLOW-GROWTH UNITS
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> Detailed review of measurement and control sector
> Sale of
- Gould
- NIS
- Pharos Marine
25 [LOGO] Thermo Electron
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RECENT ACQUISITIONS
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Spectra Physics AB Feb. 1999 BioStar Nov. 1998
- ----------------------------- -----------------------------
Laser-based instruments Point-of-Care Diagnostics
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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
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EBUSINESS - WWW.INFORMATION2.NET
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Competitive Advantages
> Leverage knowledge assets
> Breadth of "touch points"
> Mining: metals to genomes
> One-to-one marketing
27 [LOGO] Thermo Electron
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WELL-POSITIONED VS. COMPETITORS
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[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
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VALUATION
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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
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INSTRUMENTS PROVIDE KNOWLEDGE
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You cannot
improve and control
unless you can measure
and detect
30 [LOGO] Thermo Electron
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OLD STRUCTURE
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[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
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NEW STRUCTURE
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The term Thermo Electron superimposed over image of man looking through a
telescope, representing new Thermo corporate structure.
32 [LOGO] Thermo Electron
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THE NEW THERMO ELECTRON
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> Market focus
> Simple structure
> Tightly managed
> Dedicated resources
33 [LOGO] Thermo Electron
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OTHER IMPORTANT INFORMATION:
THE TENDER OFFER DESCRIBED IN THIS ANNOUNCEMENT FOR THE OUTSTANDING SHARES OF
THERMO BIOANALYSIS COMMON STOCK HAS NOT YET COMMENCED. AS SOON AS THE TENDER
OFFER COMMENCES, WE WILL FILE A TENDER OFFER STATEMENT WITH THE SECURITIES AND
EXCHANGE COMMISSION. YOU SHOULD READ THE TENDER OFFER STATEMENT WHEN IT BECOMES
AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT THE TENDER
OFFER. YOU CAN OBTAIN THE TENDER OFFER STATEMENT AND OTHER DOCUMENTS THAT ARE
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR FREE ON THE SECURITIES
AND EXCHANGE COMMISSION'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:
* TENDER OFFER STATEMENT (EXCEPT FOR EXHIBITS)
* OFFER TO PURCHASE
* LETTER OF TRANSMITTAL
* NOTICE OF GUARANTEED DELIVERY
-more-
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YOU CAN CALL US AT (781) 622-1111 OR WRITE TO US AT:
INVESTOR RELATIONS DEPARTMENT
THERMO INSTRUMENT SYSTEMS INC.
81 WYMAN STREET, P.O. BOX 9046
WALTHAM, MA 02454-9046
THE PREVIOUSLY ANNOUNCED EXCHANGE OFFER BY THERMO ELECTRON FOR OUR COMMON STOCK
HAS NOT YET COMMENCED. ONCE THE EXCHANGE OFFER COMMENCES, WE WILL FILE A
SOLICITATION/RECOMMENDATION STATEMENT WITH THE SECURITIES AND EXCHANGE
COMMISSION. YOU SHOULD READ THIS DOCUMENT WHEN IT BECOMES AVAILABLE BECAUSE IT
WILL CONTAIN IMPORTANT INFORMATION ABOUT THE EXCHANGE OFFER. YOU CAN OBTAIN THE
SOLICITATION/RECOMMENDATION STATEMENT AND OTHER DOCUMENTS THAT WILL BE FILED
WITH THE SECURITIES AND EXCHANGE COMMISSION FOR FREE WHEN THEY ARE AVAILABLE ON
THE SECURITIES AND EXCHANGE COMMISSION'S WEB SITE AT http://www.sec.gov. ALSO,
IF YOU WRITE US OR CALL US AT THE ABOVE ADDRESS AND PHONE NUMBER, WE WILL SEND
YOU THE SOLICITATION/RECOMMENDATION STATEMENT FOR FREE WHEN IT IS AVAILABLE.
