Merck KGaA buys Millipore for €5.3 billion
This article was originally published in Scrip
The German chemicals and pharmaceuticals firm Merck KGaA has agreed to acquire Millipore for €5.3 billion cash. Merck's $107 per share offer was approved by the boards of both companies yesterday. The offer represents a premium of almost a third on Millipore's share price a week ago.
The deal, which followed speculation last week that the laboratory equipment manufacturer Thermo Fisher Scientific had made a $6 billion bid, will create a €2.1 billion player in the life science sector.
On February 23rd, Millipore announced that it was evaluating its strategic alternatives, including a possible sale or merger of its business. The company hired Goldman Sachs to advise it (scripnews.com, February 25th, 2009).
Dr Karl-Ludwig Kley, chairman of Merck, said that the firm would combine Millipore's bioscience and bioprocess knowledge with its existing pharma client base to deliver growth in its chemicals business. Following the transaction, chemicals will generate 35% of Merck's total revenue, up from around 25%.
The acquisition will be funded by cash and a loan provided by Bank of America, Merrill Lynch, BNP Paribas and Commerzbank Aktiengesellschaft. Merck will assume responsibility for Millipore's debt, which was $890 million as of December 31st, 2009.
Millipore's shareholders have yet to approve the acquisition. The US firm has a broad presence in life sciences, with operations in research including antibodies and immunoassays as well as drug discovery with kinases and phosphatases.