Merck announced the completion of its 17 billion US dollar acquisition of Sigma-Aldrich. The completion follows the approval from the European Commission, which was the final antitrust condition required to close the transaction. With the creation of a leader in the life science industry, customers will benefit from a more than 300,000-product offering.
Darmstadt/Germany – With the acquisition of Sigma-Aldrich, Merck will be able to serve life science customers around the world with a set of established brands such as SAFC and Bio Reliance, in addition to Millipore and Milli-Q, as well as an supply chain that can support the delivery of more than 300,000 products. The company will cover every step of the biotech production chain, creating a complete end-to-end workflow with enhanced customer service and a simplified customer interface.
Following the acquisition, Merck 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 4.6 billion euro in 2014. As announced on publication of the results for the third quarter of 2015 on November 12, Merck expects sales to amount to between 12.6 billion euro and 12.8 billion euro in 2015.
„Almost a decade of transformation“
“The acquisition of Sigma-Aldrich marks the culmination of almost a decade of transformation, further affirming that Merck is a leading science and technology company,” said Karl-Ludwig Kley, CEO and Chairman of Merck. “We’re now a leading player in the 130 billion US dollar global life science industry and together with our two other growth platforms Healthcare and Performance Materials, Merck is set to tackle global challenges that will fundamentally change the world in which we live.”
Merck has made acquisitions and divestments totalling 38 billion euro 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. To ensure a smooth integration, Merck has made significant progress on integration planning for the new business, which will be named Merck all across the world, except for the U.S. and Canada, where the business will be named MilliporeSigma.
“This is a significant milestone in Merck’s long-term strategy to invest in life science,” said Bernd Reckmann, Member of the Executive Board in charge of Merck’s Life Science and Performance Materials business sectors. “The acquisition of Millipore in 2010 was the first major step in that journey and with the completion of the Sigma-Aldrich acquisition, we will take a quantum leap toward securing our competitive position in that space.”
New Marketing & Innovation strategy
Merck has created Strategic Marketing & Innovation teams 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 which 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’s Life Science business sector. The SAFC Hitech business will be integrated into Merck’s Performance Materials business and will operate as part of its Integrated Circuits business unit. SAFC Hitech and Merck’s Performance Materials businesses offer complementary technologies, making these two businesses a natural fit.