The company said it already had financing for the deal and would pay using a combination of cash, bank loans and bonds. Merck shares shot up on the announcement, at one point trading more than 9 per cent higher but easing to trade up 5.7 per cent at 73.52 euros by mid-afternoon in Europe. The company said, however, that it would maintain a "significant presence" in both Billerica and St. Chief Financial Officer Marcus Kuhnert said the savings would come in part from combining manufacturing capacity and streamlining administration. Merck said the combination would enable it to save 260 million euros ($340 million dollars) a year in costs within three years after closing the deal, raising the combined business' EBITDA margins from 30 per cent to 33 per cent. He said the acquisition was a chance to expand the company's operations in the life sciences sector, where product margins are around 25 per cent measured according to earnings before financial items such as interest, taxes, depreciation and amortization, or EBITDA On a conference call with reporters, Kley praised Sigma-Aldrich's "world-champion" e-commerce platform through which some 70 per cent of its products are sold. "In one of the world's key industries two companies that fit perfectly together have found each other to present a much broader product offering to our global customers" in research facilities and drug manufacturing, Kley said. Merck said it would expand the reach of its EMD Millipore chemical and equipment division, based in Billerica, Massachusetts. Sigma-Aldrich CEO Rakesh Sachdev said the deal was a "very positive outcome" for shareholders due to the price premium and for employees, "who will benefit from enhanced opportunities as part of a larger, more global organization." He said it was too early in the integration process to answer a question about possible job losses at any of the company's facilities. Louis as a business location, given Sigma-Aldrich's decades-long presence there and the company's role as a leader in civic society - a role Kley said would continue. Merck CEO Karl-Ludwig Kley said the company had a "clear commitment" to St. It said its board of directors has unanimously approved the deal, which is expected to close next year, subject to regulators' approval. Sigma-Aldrich has over 9,000 employees in 40 countries and supplies chemicals and laboratory equipment to government and commercial facilities. for $17 billion in a deal Merck says will strengthen its business in chemicals and laboratory equipment.ĭarmstadt-based Merck KGaA said Monday it is paying $140 per share in cash for all of Sigma-Aldrich's shares - a premium of 37 per cent over Friday's closing price of $102.37. Louis-based chemical firm Sigma-Aldrich Corp. In pharma and biopharma production, Merck said Sigma-Aldrich would complement Merck Millipore's existing products and capabilities with additions along the entire value chain of drug production and validation.FRANKFURT, Germany - German drug company Merck says it has agreed to buy St. The merger of Sigma-Aldrich and Merck's laboratory chemicals offshoot Merck Millipore would be able to offer the Laboratory & Academia sector a complementary range of products across laboratory chemicals, biologics and reagents. Merck said the acquisition is a key element in its "Fit for 2018" transformation and growth program aimed at strengthening its healthcare, life science and performance materials platforms. It said it is "is working closely with authorities to ensure a seamless transaction." The Darmstadt-based chemical and pharmaceutical producer said it continues to expect to close the transaction, which is still subject to regulatory approvals, in mid- 2015. A Merck shareholder vote is not required. 22, 2014, Merck will acquire all of the outstanding Sigma-Aldrich shares for $140 per share in cash. The Sigma-Aldrich board of directors had previously unanimously approved the deal. Louis, Missouri, USA, 78% of the company's shareholders approved the planned takeover by Germany's Merck KGaA for $17 billion in cash. At a special meeting held at the Sigma-Aldrich Life Science and Technology Center in St.
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