Merck KGaA to Buy Sigma-Aldrich for USD 17 Billion
By LabMedica International staff writers Posted on 28 Sep 2014 |
Merck KGaA (Darmstadt, Germany) will acquire Sigma-Aldrich (St. Louis, MO, USA) for USD 17 billion, expanding its business in North America and gaining exposure in Asia.
All outstanding shares of Sigma-Aldrich will be acquired by Merck for USD 140 per share, which would represent a 37% premium to Sigma-Aldrich’s closing stock price of USD 102.37 on September 19, 2014. Merck anticipates achieving annual synergies of about EUR 260 million (~ USD 334 million) within three years after completion of the acquisition.
Karl-Ludwig Kley, chairman of Merck KGaA called the deal a “quantum leap” for the company’s life science business, whose contributions to the German firm’s overall earnings would more than double with the addition of Sigma-Aldrich. “In one of the world’s key industries two companies that fit perfectly together have found each other to present a much broader product offering to our global customers in research, pharma, and biopharma manufacturing, and diagnostic and testing labs.” He added that the deal “will secure stable growth and profitability in an industry that is driven by trends, such as the globalization of research and manufacturing. What’s more, the combination gives us the possibility to invest even more in innovation going forward.”
Sigma-Aldrich president and CEO Rakesh Sachdev said that the combined firms “will be well-positioned to deliver significant customer benefits, including a broader, complementary range of products and capabilities, greater investment in breakthrough innovations, enhanced customer service, and a leading e-commerce and distribution platform in the industry.”
Sigma-Aldrich develops and manufactures a wide range of life science products, including chemicals, biochemicals, and equipment for life science research--including studies directed at genomic and proteomic research—as well as biotech and pharma development. The company was founded in 1951 and has about 9,000 employees.
Related Links:
Merck KGaA
Sigma-Aldrich
All outstanding shares of Sigma-Aldrich will be acquired by Merck for USD 140 per share, which would represent a 37% premium to Sigma-Aldrich’s closing stock price of USD 102.37 on September 19, 2014. Merck anticipates achieving annual synergies of about EUR 260 million (~ USD 334 million) within three years after completion of the acquisition.
Karl-Ludwig Kley, chairman of Merck KGaA called the deal a “quantum leap” for the company’s life science business, whose contributions to the German firm’s overall earnings would more than double with the addition of Sigma-Aldrich. “In one of the world’s key industries two companies that fit perfectly together have found each other to present a much broader product offering to our global customers in research, pharma, and biopharma manufacturing, and diagnostic and testing labs.” He added that the deal “will secure stable growth and profitability in an industry that is driven by trends, such as the globalization of research and manufacturing. What’s more, the combination gives us the possibility to invest even more in innovation going forward.”
Sigma-Aldrich president and CEO Rakesh Sachdev said that the combined firms “will be well-positioned to deliver significant customer benefits, including a broader, complementary range of products and capabilities, greater investment in breakthrough innovations, enhanced customer service, and a leading e-commerce and distribution platform in the industry.”
Sigma-Aldrich develops and manufactures a wide range of life science products, including chemicals, biochemicals, and equipment for life science research--including studies directed at genomic and proteomic research—as well as biotech and pharma development. The company was founded in 1951 and has about 9,000 employees.
Related Links:
Merck KGaA
Sigma-Aldrich
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