Merck KGaA buys lab supplies manufacturer in major $17 billion deal
- Merck KGaA has purchased Sigma-Aldrich for $17 billion, or $140 per share.
- One major goal of the acquisition is to fortify Merck KGaA's Millipore lab supplies business and turn it into a "sustainable growth platform."
- Merck’s main pharma product is Erbitux (cetuximab) for treatment of colorectal, head, and neck cancers.
Merck KGaA's purchase of Sigma-Aldrich is the largest deal in the company's history. The company’s commitment to the laboratory portion of its business is serious, especially considering that lab equipment only became a core element of its overall business four years ago when Merck purchased Millipore for $6 billon.
The offering price for the latest acquisition was 37% higher than the closer price of the stock just several days before, suggesting that Merck plans to benefit from numerous synergies going forward.
- www.pharmafile.com Merck KGaA pays out $17 billion for Sigma-Aldrich