Merck of Germany acquires Sigma-Aldrich for $17 Billion

Merck of Germany acquires Sigma-Aldrich for $17 Billion

Merck of Germany acquires Sigma-Aldrich for $17 Billion

Merck of Germany agreed to acquie Sigma-Aldrich, the life sciences company, for $17 billion.

 Merck called this transaction as a “quantum leap” for its life sciences business.

 “The combination of Merck and Sigma-Aldrich will secure stable growth and profitability in an industry that is driven by trends such as the globalization of research and manufacturing,” Karl-Ludwig Kley, Merck’s executive chairman, said in a statement.

 Merck of Germany will acquire all of Sigma-Aldrich oustanding shares for $140 in cash deal with 37 percent premium on the Friday’s closing price.

 Merck, which operates under the EMD brand in the United States and Canada, manufactures products for the pharmaceutical and chemical sectors.

 St. Louis’ Sigma- Aldrich produces more than 230 000 chemicals and other products for research and industrial and commercial sectors.

 Merck advisors are Guggenheim Securities and JPMorgan Chase and the law firm Skadden, Arps, Slate, Meagher & Flom, while Morgan Stanley and the law firm Sidley Austin were advised Sigma-Aldrich.

 Sigma-Aldrich’s board of directors approved the deal, which requires shareholder and regulatory approval. The transaction is expected to close in mid-2015.

Mr. Stakebay says:

The deal is expected to help Merck’s presence in North American and give it influence to Asia markets.Merck, based in Darmstadt, Germany, expects to achieve annual cost savings of about 260 million euros, or about $333 million, within three years of completing the deal.

MERCK GROUP

SIGMA – ALDRICH

Revenue

€11.095 billion (2013)

$ 2.704 billion (2013)

Operating income

€ 1.610 billion (2013)

$ 661 million (2013)

Profit

€ 1.202 billion (2013)

$ 491 million (2013)

Total assets

€ 20.818 billion (2013)

$ 3.805 billion (2013)

Total Equity

€11.069 billion (2013)

$ 2.895 billion (2013)

Employees

38 154 (2013)

9 000 (2013)

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