German drug and chemical maker Merck is set to acquire US company Sigma-Aldrich for $17 billion in a move it says will boost its lab supplies business.
St. Louis-based Sigma-Aldrich is one of the largest makers of chemicals and biological materials used in scientific laboratories. It generated sales of $2.7 billion last year.
Merck chief executive, Karl-Ludwig Kley, said: “By merging, we are securing for us stable growth and profitability in our life science business and benefiting from trends like increasing globalization of research and pharmaceutical production.”
The company’s finance chief, Marcus Kuhnert, added that it would bring sustainability to its laboratory supplies business. “With this acquisition we have the opportunity to turn one of our most reliable businesses into a core earnings contributor,” commented Mr Kuhnert.
The deal will see Merck acquire all shares for $140 apiece in cash, a 36% premium over the one-month average closing price.

Major pharmaceutical mergers

Merck’s acquisition follows a raft of recent high profile takeovers and mergers. Last year, Thermo Fisher Scientific agreed to pay $13.6 billion to acquire Life Technologies Corp.
Sigma-Aldrich produces and sells a broad range of biochemicals, organic and inorganic chemicals and related products to groups such as Pfizer and Novartis.
The deal marks the biggest takeover in Merck’s history.

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Phill Allen

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An in and outside the (bioprocess) box thinker, fluid management specialist Phill knows a thing or two about keeping pharma liquid logistics flowing.

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