NEW YORK (GenomeWeb News) - Millipore will acquire Serologicals for $1.4 billion in cash --- which is how much revenue the combined comany will likely generate this year, the firms said today.
The acquisition will enable Millipore's Bioscience Division, which includes tools for protein and DNA research, analytical samples preparation, and bioassay development, to play in the drug-discovery products and services, antibodies, cell biology reagents, and stem cell research markets.
Millipore's Bioprocess Division, meantime, will gain Serologicals' cell culture supplements, which will help it to enter the upstream bioprocessing market, which it pegs at $1 billion. Combined, these products will enable Millipore to sell upstream cell culture and downstream separation offerings for biopharmaceutical production.
"With the addition of Serologicals' R&D capabilities, we will ... be able to pursue new markets and bring together the applications expertise of both companies," Millipore Chairman, President, and CEO of Martin Madaus said in a statement.
Millipore also said it expects to increase sales of Serologicals' products in international markets such as Europe, Asia and Japan, where Millipore has a significant presence.
Millipore said the buy will enable it to generate around $1.4 billion in combined 2006 and grow 2007 receipts by between 9 and 11 percent year over year. Serologicals generated $274.9 million in revenue last year, a 40.3-percent increase over 2004.
The combined company, which will employ around 5,800 people, will "have significantly expanded" R&D capabilities and a worldwide sales, sales support, and service organization.
The acquisition is expected to close by June 30.
Terms of the deal, which is subject to Serologicals shareholder approval, customary regulatory approvals, and other conditions, call for Serologicals shareholders to receive $31.55 in cash for each common share they own.
The acquisition will enable Millipore to "optimize workflows from sample preparation, to developing and performing assays, to analyzing results," Madaus said. "Our ... offering will include process development and scale-up, upstream processing, downstream filtration, and ongoing compliance monitoring and testing."
It was not immediately clear whether the acquisition will cause Millipore to shed Serologicals staff, but Madaus said "we welcome the employees of Serologicals to Millipore."