Merck to sell VWR International

Merck KGaA has entered into a stock purchase agreement with private equity firmClayton, Dubilier & Rice, whereby a fund managed by Clayton, Dubilier & Rice will buy 100% of Merck's laboratory distribution business, VWR International, for the sum of US$1.68bn. The agreement is subject to regulatory approval and closing of the transaction will take place as soon as all necessary approvals have been granted. As part of the agreement, VWR will continue to distribute Merck's laboratory products. US company VWR has 5,880 employees and annual sales of approximately e2.4bn. It has a 750,000 product range from test tubes to fully equipped laboratory cleanrooms and biologic materials for drug development. "The sale of VWR will give Merck much better margins and allow it to better focus on its core businesses of pharmaceuticals and chemicals," said Merck CEO Bernhard Scheuble. "This cash infusion will make Merck almost free of financial debt and give it the flexibility to expand its core businesses if opportunities should arise. We believe that selling to a financial investor at this price is the best solution for our shareholders, for Merck, and for the growth prospects of VWR and its employees." In Europe, Merck had been manufacturing laboratory products since 1827 and moved into the distribution business in 1992 with the purchase of the German firm Bender & Hobein. Several more European acquisitions followed and led to the 1999 establishment of Merck Eurolab in Zaventem, Belgium. The North American and European businesses were officially combined into VWR International in July 2000.

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