Merck Buys Millipore – Analyst Blog

Millipore Corporation (MIL), a leading life science company, and Merck & Co. Inc. (MRK), a global pharmaceutical and chemicals company, entered into a definitive agreement under which Merck will acquire all outstanding shares of common stock of Millipore for US$107 per share in cash, or a total transaction value, including net debt, of approximately €5.3 billion (US$7.2 billion).

 

The transaction was approved by the boards of directors of both companies. Millipore and Merck will create a €2.1 billion (US$2.9 billion) world-class partner in the life science sector, achieving significant scale in high-margin specialty products with an attractive growth profile.

 

Together, Millipore and Merck will have a significant presence in high-growth segments and an enhanced geographic presence. Combining the research and development capabilities of both companies will create a powerful innovation platform to develop cutting-edge technologies that are tailored even more closely to the needs of customers.

 

The acquisition will be funded through available cash and a term loan provided by Bank of America, Merrill Lynch, BNP Paribas and Commerzbank Aktiengesellschaft. Merck plans to replace part of the facility by issuing bonds later. Merck is committed to retaining a solid investment-grade rating.

 

Millipore has a strong position in the attractive bioresearch and bio-production segments, offering a comprehensive range of products, technologies and services for pharma and biotech companies, as well as for academia, to improve laboratory productivity and develop and optimize manufacturing processes.

 

Millipore has been continuously transforming itself into a life science leader by driving innovation, entering new markets and generating exceptional operational performance. In 2009, Millipore generated sales of US$1.7 billion, with around 6,000 employees in more than 30 countries. The transaction is expected to be completed by the second half of 2010.