Drugs and chemicals maker Merck has agreed a deal to buy Sigma-Aldrich for $17 billion in cash to boost its Merck Millipore lab supplies business in the biggest takeover in the German group's history, lifting its shares.
The deal, approved by Sigma-Aldrich's management, will see Merck acquire all shares for $140 each in cash.
That represents a 37% premium over the latest closing price of $102.37 on September 19 and a 36% premium to the one-month average closing price, according to Merck.
Family-controlled Merck said the deal would immediately top up adjusted earnings per share and the margin of earnings before interest, taxes, depreciation and amortisation (EBITDA) over sales.
Merck expects to achieve annual synergies of about €260m, which should be fully realised within three years after closing.
St Louis-based Sigma-Aldrich, which says it is the world's largest supplier of biochemicals and organic chemicals to research laboratories, had 2013 sales of $2.7 billion.
Merck, the largest maker of liquid crystals for TV and computer screens, made lab equipment a major pillar of its business when it purchased US group Millipore for $6 billion in 2010.
Previously, its biggest deal was the takeover of Swiss biotech company Serono, a maker of fertility treatments, for €10.3 billion.
