Merck KGaA to buy Sigma-Aldrich for $17
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[September 22, 2014]
FRANKFURT (Reuters) - Drugs and
chemicals maker Merck KGaA said it agreed to acquire Sigma-Aldrich for
$17 billion in cash to boost its Merck Millipore lab supplies business
in the biggest takeover in the German group's history, lifting its
The deal, approved by Sigma-Aldrich's management, will see Merck
acquire all shares for $140 apiece in cash.
That represents a 37 percent premium over the latest closing price
of $102.37 on Sept. 19 and a 36 percent premium to the one-month
average closing price, according to Merck.
Family-controlled Merck said on Monday the deal would immediately
top up adjusted earnings per share and the margin of earnings before
interest, taxes, depreciation and amortization (EBITDA) over sales.
Merck expects to achieve annual synergies of approximately 260
million euros ($334 million), which should be fully realized within
three years after closing.
Shares in Merck, which initially turned negative on the news, traded
up 5.8 percent at 73.66 euros by 6:39 a.m. EDT, against a flat
European chemicals index.
St Louis, Missouri-based Sigma-Aldrich, which says it is the world's
largest supplier of biochemicals and organic chemicals to research
laboratories, had 2013 sales of $2.7 billion.
Merck, the largest maker of liquid crystals for TV and computer
screens, made lab equipment a major pillar of its business when it
purchased U.S. group Millipore for $6 billion in 2010.
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Previously, its biggest deal was the takeover of Swiss biotech
company Serono, a maker of fertility treatments, for 10.3 billion
(Additional reporting by Maria Sheahan; Editing by Georgina Prodhan)
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