Sigma-Aldrich Stockholders Approve $17 Bln Acquisition By Merck KGaA

(RTTNews) - Sigma-Aldrich Corp (SIAL) said Friday its stockholders approved the company's $17 billion acquisition by German drug maker Merck KGaA (MKGAY.PK).

Sigma-Aldrich stockholders also approved, on an advisory, non-binding basis, compensation that may become payable to named executive officers as a result of the acquisition.

In September, Merck KGaA (agreed to buy Sigma-Aldrich for $140 per share in cash, totaling $17 billion or 13.1 billion euros, establishing a major player in the life science industry. Merck expects the transaction to be immediately accretive to its earnings.

Sigma-Aldrich is a life science and high technology company with 9,000 employees. It manufactures chemicals, biochemicals and equipments, and also provides biopharmaceutical testing services. In late July, Sigma-Aldrich reported higher profit in its second quarter, with 3 percent increase in sales to $701 million.

The company expects to achieve annual synergies of about 260 million euros or approximately $340 million, which should be fully realized within three years after closing.

According to the firm, the acquisition expands its division EMD Millipore's global reach, increasing the company's presence in North America and adding exposure to fast-growing Asian markets. Merck expects the combined life science business to have solid growth potential, strong and sustainable cash flow, and meaningful efficiency potential on an operational level.

Based on fiscal year 2013 financials, the business would have had combined sales of 4.7 billion euros or $6.1 billion, an increase of 79 percent and combined EBITDA pre of 1.5 billion euros or $2.0 billion, an increase of 139 percent. Further, Merck's total 2013 sales would have increased by approximately 19 percent, and EBITDA pre by approximately 24 percent.

Closing is expected mid-year 2015, subject to regulatory approvals, approval by a special meeting of the shareholders of Sigma-Aldrich and other customary closing conditions.