Merck KGaA completes $17bn Sigma-Aldrich acquisition
pharmafile | November 18, 2015 | News story | Manufacturing and Production, Sales and Marketing | M&A Sigma Aldridge, Merck, acquisitions, mergers
Merck KGaA has announced the completion of its $17 billion acquisition of Sigma-Aldrich, having cleared the final regulatory hurdle and received European Commission approval.
Sigma-Aldrich’s board originally approved the transaction in September 2014, but Merck had to wait for its new acquisition to sell parts of its solvents and inorganics business in Europe – to industrial group Honeywell for around €105 million – before the deal could be formally completed.
With the Honeywell sale completed in October and approved by the European Commission, Merck got the green light and was able to take the next step in its transformation from a pharma and chemicals company, to one that encompasses the three business areas of healthcare, life sciences and performance materials. The company recently rebranded to reflect this new business structure and positioning in the market. Merck recently credited the deal for an upturn in company performance, in its latest set of financial results.
The deal for Sigma-Aldridge, the world’s largest supplier of biochemicals and organic chemicals to research laboratories, helps Merck expand its Millipore lab supplies business, and adds Sigma established brands including SAFC and BioReliance to Millipore and Milli-Q, as well as an efficient supply chain that can support the delivery of more than 300,000 products.
Karl-Ludwig Kley, chief executive and chairman of Merck KGaA, comments: “We’re now a leading player in the $ 130 billion global life science industry and together with our two other growth platforms Healthcare and Performance Materials, we are set to tackle global challenges that will fundamentally change the world in which we live.”
Following the acquisition, Darmstadt, Germany-based Merck KGaA will have around 50,000 employees in 67 countries, working at 72 manufacturing sites worldwide. The company expects sales of between € 12.6 billion and € 12.8 billion in 2015.
Joel Levy
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