10/08/2014

State of Missouri Department of Economic Development

German company acquires Missouri company

German pharmaceutical and chemical company Merck KGaA has agreed to acquire St. Louis-based Sigma-Aldrich for $17 billion in cash.


Merck agreed to buy all the outstanding shares of Sigma-Aldrich for $140 per share in cash, representing a 37 percent premium to the Sigma's closing price of $102.37 on Friday. The deal is expected to close in mid-2015.


Sigma-Aldrich's board has approved the agreement, which will be sent to shareholders for approval at a special meeting. A vote by Merck shareholders isn't required, officials said.


Merck officials said Monday that the deal will expand the global reach of its chemical unit EMD Millipore, also known as Merck Millipore, "increasing the company's presence in North America and adding exposure to fast-growing Asian markets."


Both Sigma-Aldrich and EMD Millipore will offer customers a complementary range of laboratory chemicals, biologics and reagents, officials said, and in pharma and biopharma production, Sigma "will complement" EMD Millipore's existing products and capabilities.


Merck plans to maintain a "significant presence" in St. Louis and in Billerica, Massachusetts, following completion of the transaction, as well as in Millipore sites such as the company's base in Darmstadt, Germany, and in Molsheim, France, officials said.


Merck expects annual synergies of about $340 million, to be fully realized within three years after the deal closes, officials said.


Sigma-Aldrich (Nasdaq: SIAL), led by President and CEO Rakesh Sachdev, reported second-quarter earnings of $133 million on revenue of $701 million. The life science and technology company operates in 37 countries and has about 9,000 total employees


German pharmaceutical and chemical company Merck KGaA has agreed to acquire St. Louis-based Sigma-Aldrich for $17 billion in cash.


Merck agreed to buy all the outstanding shares of Sigma-Aldrich for $140 per share in cash, representing a 37 percent premium to the Sigma's closing price of $102.37 on Friday. The deal is expected to close in mid-2015.


Sigma-Aldrich's board has approved the agreement, which will be sent to shareholders for approval at a special meeting. A vote by Merck shareholders isn't required, officials said.


Merck officials said Monday that the deal will expand the global reach of its chemical unit EMD Millipore, also known as Merck Millipore, "increasing the company's presence in North America and adding exposure to fast-growing Asian markets."


Both Sigma-Aldrich and EMD Millipore will offer customers a complementary range of laboratory chemicals, biologics and reagents, officials said, and in pharma and biopharma production, Sigma "will complement" EMD Millipore's existing products and capabilities.


Merck plans to maintain a "significant presence" in St. Louis and in Billerica, Massachusetts, following completion of the transaction, as well as in Millipore sites such as the company's base in Darmstadt, Germany, and in Molsheim, France, officials said.


Merck expects annual synergies of about $340 million, to be fully realized within three years after the deal closes, officials said.


Sigma-Aldrich (Nasdaq: SIAL), led by President and CEO Rakesh Sachdev, reported second-quarter earnings of $133 million on revenue of $701 million. The life science and technology company operates in 37 countries and has about 9,000 total employees