Merck Millipore unveiled as $7bn acquisition completed
pharmafile | July 20, 2010 | News story | Manufacturing and Production | Merck KGaA, Millipore
Germany’s Merck KGaA has completed its $7 billion acquisition of processing equipment specialist Millipore, officially launching the combined Merck Millipore division.
Millipore has been combined with Merck’s chemicals division to create a life sciences company with annual sales of around $2.9 billion and a focus on “high-growth, high-margin segments such as bio-research and bio-production,” according to Dr Karl-Ludwig Kley, chairman of Merck’s executive board.
Merck Millipore will be known as EMD Millipore in the US and Canada and will be headquartered in Billerica, Massachusetts.
Merck contributes a portfolio of specialty chemicals used in research and manufacturing, while Millipore brings its expertise in laboratory equipment, upstream processing technologies for biologics and other equipment such as water purification systems.
Merck believes that joining the two businesses will stimulate growth in its chemicals division, which accounts for around a quarter of the group’s approximately pro forma $12 billion annual turnover.
At a time when many of its peers in the pharmaceutical sector have been focusing down on their core businesses, Merck has continued to be a staunch proponent of its diversified business strategy, combining pharmaceuticals with fine chemicals and performance materials like liquid crystals for use in consumer electronics.
Merck Millipore is expected to give a lift to the life sciences end of its business, helped by the shift of the pharmaceutical industry towards the development of biologic medicines, as well as a broader geographic presence, according to analysts. The expectation is that the new unit will account for a third of total revenues within the next few years.
The company expects the combined business to generate annual cost synergies of around $100 million realised within the next three years.
Merck Millipore personnel
Dr Bernd Reckmann will lead Merck Millipore and continue his role as head of the Merck Chemicals business sector. Meanwhile Jon DiVincenzo, currently president of Millipore’s Bioscience division, will head up the Bioscience business unit at the new combined company.
Other key appointments include Merck’s Klaus Bischoff, who will head up the Lab Solutions business unit at Merck Millipore, with Millipore’s Jean-Paul Mangeolle leading the Process Solutions unit. Peter Kershaw, will head operations, fulfilling a similar role to his earlier position at Millipore.
Martin Madaus, Millipore’s chief executive, will not be joining Merck Millipore but will be available as an advisor during the integration process, according to the two firms.
Merck says it will now begin the process of de-listing the shares of Millipore from the New York Stock Exchange.
Phil Taylor
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