Merck KGaA Completes $17 Billion Acquisition of Sigma AldrichBy
Merck KGaA has completed its $17 billion acquisition of Sigma-Aldrich, the life sciences services and products company.The completion follows last week's approval from the European Commission, which was the final antitrust condition required to close the Sigma-Aldrich transaction. Following the acquisition, Merck KGaA, Darmstadt, Germany, will have around 50,000 employees in 67 countries, working at 72 manufacturing sites worldwide. Combined pro forma full-year life science sales amounted to EUR 4.6 billion ($4.9 billion) in 2014. As announced on publication of the results for the third quarter of 2015, the company expects sales to amount to between EUR 12.6 billion ($13.4 billion) and EUR 12.8 billion ($13.6 billion) in 2015.
“The acquisition of Sigma-Aldrich marks the culmination of almost a decade of transformation, further affirming we are a leading science and technology company,” said Karl-Ludwig Kley, CEO and Chairman of Merck KGaA, in a company statement.”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.”
Merck KGaA has made acquisitions and divestments totaling EUR 38 billion ($40.5 billion) in the past decade, turning the former pharma and chemicals company into a science and technology company with three businesses in healthcare, life science and performance materials. With the acquisition of Sigma-Aldrich, Merck KGaA, Darmstadt, Germany, will be able to serve the life science industry with more than 300,000 products. To ensure a smooth integration, Merck KGaA has made significant progress on integration planning for the new business, which will be named “MilliporeSigma” in the US and Canada.
Merck KGaA has created Strategic Marketing & Innovation teams (SMIs) to promote and deliver innovation tailored to its life science customers' needs. Organized around three customer segments, these teams will be responsible for defining customer segment strategy, product portfolio, and roadmap and product value propositions. The new business has commercial areas that are managed by geography to leverage regional and local expertise. The commercial areas are responsible for marketing, sales as well as customer and dealer relationships.
Sigma-Aldrich's SAFC Commercial business, excluding the SAFC Hitech business, will be part of Merck KGaA Life Science business sector. The SAFC Hitech business will be integrated into the company's Performance Materials business and will operate as part of its Integrated Circuits business unit. SAFC Hitech and the company's Performance Materials businesses offer complementary technologies.
Source: Merck KGaA