Merck KGaA to Buy Millipore for $7.2 Billion
Merck also plans to retain Millipore’s senior management. The transaction requires the approval of Merck and Millipore’s shareholders and is expected to be completed in the second half of the year.
The offer price is a 50% premium over Millipore’s closing stock price on February 20, the last day prior to media reports of Thermo’s bidding. Bloomberg reported that Millipore put itself up for bid after receiving the unsolicited offer from Thermo, and that GE was among the other companies that considered bidding. Merck has stated in the past that it was seeking acquisitions to diversify its chemicals business.
Darmstadt, Germany and Billerica, MA 2/28/10; Billerica, MA 2/24/10—Merck KGaA has agreed to acquire Millipore for approximately £5.3 million ($7.2 billion), including net debt, or $107 per share in cash. Millipore provides bioproduction and bioresearch products, including life science consumables, filtration and laboratory water products. The deal comes a week after media reports that Thermo Fisher Scientific was planning to acquire the company for $6 billion. Following the reports, Millipore confirmed it had hired Goldman Sachs to assist in evaluating strategic alternatives. Merck stated that the acquisition will create a £2.1 billion ($2.9 billion) business in the life science sector. “This is a combination with an excellent strategic fit, which will allow us to cover the entire value chain for our pharma and biopharma customers, offering integrated solutions beyond chemicals,” stated Dr. Karl-Ludwig Kley, chairman of the Executive Board of Merck. Merck’s Chemicals business, which includes laboratory chemicals and life science consumables, currently generates around 25% of company revenues, but will account for 35% following the transaction. Merck stated that it plans to record around £75 million ($100) in annual cost savings within three years of the acquisition’s completion.
