German pharmaceutical and chemical giant Merck announced today that it has agreed to buy Sigma-Aldrich, a US life sciences company for $US17 billion. Merck will pay $US140 per share in cash – a 37% premium to Friday closing price of $US102.37.
This type of transaction is not a first for Sigma-Aldrich. As the name suggests, it was formed when Sigma Chemical Company and Aldrich Chemical Company merged in 1975. The combined publicly-traded company has acquired at least six other biochemical and research companies since 2001.
However, Sigma-Aldrich isn’t exactly a household name outside of St. Louis, Missouri.
In presentations given in May and June, Sigma-Aldrich detailed the scope of its operations and revenue.