February28,2010

• MercktoacquirealloutstandingMilliporesharesforUS$107pershareincash,creatingaworld-classpartnerforthelifesciencesector
• Agreedtransactionvaluedatapproximately€5.3billion(US$7.2billion)
• Combinationwillcreatea€2.1billion(US$2.9billion)partnerfortheLifeSciencesectorandtransformMerckChemicals
• Combinedbusinesswillhavesignificantscaleinhigh-growthbioresearchandbioproductionsegments
• MerckintendstoretainMillipore’sheadquartersinBillerica,Massachusetts

Darmstadt,GermanyandBillerica,MA-February28,2010–MerckKGaA,aglobalpharmaceuticalandchemicalcompany,andMilliporeCorporation(NYSE:MIL),aleADIngLifeSciencecompanybasedinBillerica,Massachusetts,USA,todayannouncedthattheyhaveenteredintoadefinitiveagreementunderwhichMerckKGaAwillacquirealloutstandingsharesofcommonstockofMillipore,forUS$107pershareincash,oratotaltransactionvalue,includingnetdebt,ofapproximately€5.3billion(US$7.2billion).Thetransactionwasapprovedbytheboardsofdirectorsofbothcompanies.MilliporeandMerckwillcreatea€2.1billion(US$2.9billion)world-classpartnerfortheLifeSciencesector,achievingsignificantscaleinhigh-marginspecialtyproductswithanattractivegrowthprofile.

 

\"Thistransactionisveryattractivetoshareholders,customersandemployeesofbothcompanies,”saidDr.Karl-LudwigKley,ChairmanoftheExecutiveBoardofMerck.\"Thisisacombinationwithanexcellentstrategicfit,whichwillallowustocovertheentirevaluechainforourpharmaandbiopharmacustomers,offeringintegratedsolutionsbeyondchemicals.”
Milliporehasastrongpositionintheattractivebioresearchandbioproductionsegments,offeringacomprehensiverangeofproducts,technologiesandservicesforpharmaandbiotechcompanies,aswellasforacademia,toimprovelaboratoryproductivityandtodevelopandoptimizemanufacturingprocesses.In2009MilliporegeneratedsalesofUS$1.7billion,witharound6,000employeesinmorethan30countries.

MartinMadaus,Chairman,PresidentandCEOofMilliporesaid,\"Overthepastfiveyears,wehavetransformedMilliporeintoalifescienceleaderbydrivinginnovation,enteringnewmarkets,andgeneratingexceptionaloperationalperformance.Today’sannouncement,whichistheoutcomeofathoroughstrategicreviewprocess,isavalidationofthetremendousvalueoftheMilliporebrandandatestamenttothevaluethistransformationhascreatedforallofourstakeholders.Weareexcitedtojoinahigh-qualitycompanylikeMerckaswewillgaingreaterscaleandscopeinthelifescienceindustry.Thisisaverypositiveoutcomeforouremployeesandcustomersaswecontinuetobuildonourstrategyforgrowth,whilemaintainingourheadquartersinBillerica.”

Together,MilliporeandMerckwillhaveasignificantpresenceinhigh-growthsegmentsandanenhancedgeographicpresence.CombiningtheresearchanddevelopmentcapABIlitiesofbothcompanieswillcreateapowerfulinnovationplatformtodevelopcutting-edgetechnologiesthataretailoredevenmorecloselytotheneedsofcustomers.

Dr.Kleyadded:\"BycombiningMillipore’sbioscienceandbioprocessknowledgewithourownexpertiseinservingpharmacustomers,wewillbeabletounlockvalueinourchemicalsbusinessandtransformitintoastronggrowthdriverforMerck.Throughthisacquisition,wewillexpandtheoverallproductofferingoftheMerckGroup,usingthewell-recognizedMilliporebrandinadditiontoourownbrand.”

TheacquisitionisfullyinlinewithMerck’sstrategyoffocusingonhigh-margin,specialtyproductswithanattractivegrowthprofile.Inaddition,thetransactionwillleadtoamorebalancedbusinessprofilefortheGroup.CurrentlytheChemicalsbusinesssectorgeneratesaround25%ofMerck’stotalrevenues.Followingthetransaction,thechemicalsbusinesswillcontribute35%oftotalGrouprevenuesof€8.9billion(proforma),drivenbyitsstrongLiquidCrystalsbusinessandthenewworld-classlifesciencebusiness.

Inordertoensureaseamlessintegrationofthetwobusinesses,Merckwillapplya\"bestofbothworlds”integrationapproachacrossalloperatingbusinessfunctions.MerckplanstobuildonMillipore’stalentedworkforceandintendstoretainitsseniormanagement.ThecompanyalsoplanstomaintainMillipore’sheadquartersinBillericaandcombineitwithMerck’sU.S.chemicalsheadquarters.MerckexpectsthatthecombinedbusinesswillgenerateannualcostsynergiesofaroundUS$100million
(€75million),whichMerckexpectstorealizewithinthreeyearsfromtheclosingofthetransaction.

TheacquisitionwillbefundedthroughavailablecashandatermloanprovidedbyBankofAmericaMerrillLynch,BNPParibasandCommerzbankAktiengesellschaft.Merckplanstoreplacepartofthefacilitythroughtheissuanceofbonds.Merckiscommittedtoretainingasolidinvestment-graderating.

CompletionoftheacquisitionrequirestheapprovalofMilliporeshareholders,forwhichMilliporewillcallaspecialshareholdersmeeting,andthesatisfactionofothercustomaryconditions,includingantitrustclearance.Duetothefactthatthetwobusinessesarehighlycomplementary,Merckexpectsthatthetransactionwillclearregulatoryreview.Merckanticipatesthatthetransactionwillbecompletedinthesecondhalfof2010,atwhichtimealloutstandingsharesofMilliporecommonstockwillbeexchangedfortherighttoreceivetheagreedcashpayment.

GuggenheimSecurities,LLCandPerellaWeinbergPartnersLPhaveactedasfinancialadvisorstoMerckinthetransaction,andSkadden,Arps,Slate,Meagher&FlomLLPservedastheGroup’slegaladvisor.GoldmanSachs&Co.actedasfinancialadvisortoMillipore,andCravath,Swaine&MooreLLPandRopes&GrayLLPactedasMillipore’slegaladvisors.