Millipore, Merck KGaA deal

Merck KGaA will acquire Millipore for $107 per share in cash, or $5.6 billion based on 56 million shares outstanding at Feb. 23. The companies said the deal, including net debt, was valued at €5.3 billion ($7.2 billion). The price is a 13% premium to Millipore's close of $94.41 on Feb. 26 and a 50% premium to Millipore's close of $71.34 on Feb. 19, before media reports indicated that Thermo Fisher Scientific Inc. (NYSE:TMO, Waltham, Mass.) planned to acquire the company.

Millipore, which provides tools and services for bioscience research and biopharmaceutical manufacturing, reported 2009 sales of $1.7 billion. Merck said the deal would expand its product offerings for life sciences and also lead to a more balanced business, with chemicals contributing 35% to group revenues, up from 25%. Merck plans to integrate its U.S. chemicals headquarters with Millipore's Billerica, Mass., headquarters and retain Millipore's senior management. Merck expects the combined businesses to generate annual cost savings of about $100 million starting in three years. ...