Millipore acquires fellow US firm Serologicals in a $1.4B deal

Bioprocess and bioscience products and services firm Millipore has entered into an agreement to acquire fellow USA-based Serologicals, in an all cash transaction, including the assumption of projected debt, estimated at around $1.4 billion. The deal, which is subject to Serologicals' shareholders approval and customary regulatory clearance, is expected to close on or about June 30.

Millipore says the deal will transform it into a company with combined annual revenues of some $1.4 billion and, assuming stable foreign exchange rates, 2007 combined revenues will grow 9%-11% over 2006 pro forma figures.

Assuming the transaction closes as planned, Millipore expects the acquisition to increase its 2006 non-Generally-Accepted Accounting Principle earnings per share between $0.10-$0.15, which will result in 2006 non-GAAP earnings of $3.00-$3.10 per share. It anticipates that its 2007 non-GAAP EPS for the combined company will be in a range of $3.60-$3.75. It expects cost savings and synergies of $90.0-$10.0 million in 2007, and $15.0-$17.0 million in 2008.