Sigma-Aldrich Acquisition puts Merck amongst Life Science Industry leaders

A definitive agreement under which Merck KGaAwill acquire Sigma-Aldrich for $17.0 billion (€13.1 billion), will establish the Darmstadt as one of the leading players in the $130 billion global life science industry.

Merck will acquire all of the outstanding shares of Sigma-Aldrich for $140 per share in cash which represented a 37% premium to the closing price of $102.37 on September 19, 2014. It expects to achieve annual synergies of approximately €260 million (approximately $340 million), which should be fully realised within three years after closing.

“This transaction marks a milestone on our transformation journey aimed at turning our three businesses into sustainable growth platforms”, said Karl-Ludwig Kley, Chairman of Merck’s Executive Board. “For our life science business it’s even more than that: it’s a quantum leap. 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.”

The combined company, he added, would secure stable growth and profitability in an industry driven by trends such as the globalisation of research and manufacturing, with the possibility of higher R&D investment. What’s more, the combination gives us the possibility to invest even more in innovation going forward. “We are delighted to make this compelling proposition to Sigma-Aldrich’s shareholders, who will obtain full and certain cash value for their shares.”

“We are excited to join forces with Merck, a distinguished industry leader,” said Rakesh Sachdev, President and Chief Executive Officer, Sigma-Aldrich. “This transaction is a clear validation of our success in transforming Sigma-Aldrich into a customer-focused and solutions-oriented global organisation. This is a testament to the strength of the Sigma-Aldrich brand and the accomplishments of our 9,000 employees worldwide. We believe this is a very positive outcome for our shareholders, who will receive a significant premium, and our employees, who will benefit from enhanced opportunities as part of a larger, more global organisation.”