More on the Sigma-Aldrich – Merck deal
Merck stated that it anticipates achieving annual cost savings of about 260 million euros, or close to $333 million, within three years of completing the deal.
Sigma-Aldrich Corporation (NASDAQ:SIAL)’s board of directors has unanimously approved the deal, but the deal still requires both shareholder and regulatory approval before it cn be finalized. The acquisition is anticipated to close in mid-2015.
Sigma-Aldrich is based in St. Louis, Mo., and produces more than 230,000 specialty chemicals and other products that are used in research, medicine and production across a variety of commercial sectors. The company had revenues of $2.7 billion in 2013 and currently employs more than 9,000 people in 37 countries across the globe.
Merck KGaA (ETR:MRK) (OTCMKTS:MKGAY), known under the EMD brand in the U.S. and Canada, manufactures supplies and specialty products for the pharmaceutical and chemical industries. The firm enjoyed revenues of more than €11.1 billion in 2013 and employs nearly 39,000 people in 66 countries worldwide.
Guggenheim Securities and JPMorgan Chase, as well as attorneys Skadden, Arps, Slate, Meagher & Flom advised Merck in the deal, and Morgan Stanley and the law firm Sidley Austin acted as advisers to Sigma-Aldrich.
Statement from Merck
“The combination of Merck and Sigma-Aldrich Corporation (NASDAQ:SIAL) will secure stable growth and profitability in an industry that is driven by trends such as the globalization of research and manufacturing,” said Karl-Ludwig Kley, Merck’s executive chairman, in a statement released Monday.
The statement also described the deal as a “quantum leap” for Merck KGaA (ETR:MRK) (OTCMKTS:MKGAY)’s life sciences business.
