Monday, March 01, 2010
The transaction is valued at $7.2 billion. The combined business will have significant scale in the high-growth bioresearch and bioproduction segments.
"This is a combination with an excellent strategic fit, which will allow us to cover the entire value chain for our pharma and biopharma customers, offering integrated solutions beyond chemicals," said Dr. Karl-Ludwig Kley, Chairman of the Executive Board of Merck.
Millipore has a strong position in the attractive bioresearch and bioproduction 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 to develop and optimize manufacturing processes. In 2009, Millipore generated sales of $1.7 billion, with around 6,000 employees in more than 30 countries.
Martin Madaus, Chairman, President and CEO of Millipore said, "Over the past five years, we have transformed Millipore into a life science leader by driving innovation, entering new markets, and generating exceptional operational performance. Today's announcement, which is the outcome of a thorough strategic review process, is a validation of the tremendous value of the Millipore brand and a testament to the value this transformation has created for all of our stakeholders. We are excited to join a high-quality company like Merck as we will gain greater scale and scope in the life science industry."
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.
In order to ensure a seamless integration of the two businesses, Merck will apply a "best of both worlds" integration approach across all operating business functions. Merck plans to build on Millipore's talented workforce and intends to retain its senior management. The company also plans to maintain Millipore's headquarters in Billerica and combine it with Merck's U.S. chemicals headquarters.