A global pharmaceutical company is planning to maintain a significant presence in St. Louis once its $17 billion acquisition of a local life sciences company closes.
Germany-based Merck KGaA Chief Executive Officer Karl-Ludwig Kley says it is too early to fully discuss the synergies that will be created by the deal for Sigma-Aldrich Corp.
Merck says the St. Louis-based chemical compound provider will enhance efforts to provide services to drug makers and research institutions.
Sigma-Aldrich has approximately 9,000 workers worldwide and approximately 1,800 in St. Louis.
"The city has been the home of Sigma-Aldrich for decades and we not only respect this, but treasure the values which are embedded in this operation," said Kley.
The combined company is expected to have sales of $6.1 billion.
Sigma-Aldrich CEO Rakesh Sachdev says the companies have very similar goals.
"Our people get excited coming to work every morning because they know in some form, or fashion, they are going to be improving the quality of life. What’s great is that Merck has the same mission – is to improve the quality of life."
The deal was announced Monday morning. It has been unanimously approved by Sigma-Aldrich's board, but still needs to be cleared by shareholders.
Regulatory approvals are also needed.
If all goes well, it should close by the middle of next year.
Although Kley has stated it is too soon to provide specifics about synergies, a presentation given to analysts and reporters suggests the combined company will:
Consolidate its manufacturing footprint Streamline administrative functions and infrastructure
Save U.S. public company costs
The synergies should be fully implemented in the third year after the deal closes.
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