NEW YORK (GenomeWeb News) – Merck KGaA has completed its roughly $7 billion acquisition of Millipore and has formed a new life sciences division called EMD Millipore.
Merck agreed to acquire Millipore earlier this year for $107 per share in cash, plus debt. Merck shareholders approved the deal in June, and the transaction gained antitrust clearance from US and European regulatory authorities.
The EMD Millipore division, known as Merck Millipore outside of the US and Canada, will consist of three business units — Bioscience, Lab Solutions, and Process Solutions. The division will be lead by Bernd Reckmann, who has been with Merck since 1986 and currently serves as head of its Chemicals Business Sector and a member of the firm's executive board.
"With today's launch of EMD Millipore, we are creating a world-class partner for the Life Science sector, with a comprehensive product offering and enhanced global scale and innovative power," Karl-Ludwig Kley, chairman of the Merck Executive Board, said in a statement. "We will now move quickly to bring together the expertise and complementary capabilities of both Merck and Millipore employees to capture the significant opportunities in the high-growth, high-margin market segments such as bio-research and bio-production."
EMD Millipore will have around 10,000 employees in 64 countries, and it has pro forma revenues of roughly $2.9 billion in fiscal-year 2009.
Merck said that it expects the majority of integration decisions to be made by the end of this year. It has previously said that it expects the combined business to generate annual cost synergies of around $100 million within three years of the closing of the transaction.
Millipore CEO Martin Madaus is not joining the newly combined firm, but he will serve as an advisor during the integration process. Millipore CFO Charles Wagner is also leaving the company.