Siemens to take over Dade Behring for US$7bn
9 August 2007
Siemens has further strengthened its diagnostics
capabilities with its merger agreement with US-based Dade Behring, Inc. The
planned acquisition has a total transaction volume of approximately US$7
billion (about €5 billion).
Dade Behring, headquartered in Deerfield,
Illinois, has 6,400 employees and operations in 35 countries. It provides
clinical laboratory equipment and integrated solutions for routine chemistry
testing, immunodiagnostics (including infectious disease testing),
haemostasis testing and microbiology. With its approximately 6,400
employees, Dade Behring realized sales of approx. US$1.7 billion in fiscal
The deal, which is expected to be finalised in the second
quarter of fiscal year 2008, follows the acquisition of Bayer's diagnostics
division and Diagnostic Products Corp. in the last year. The announced price
for Dade Behring was nearly 40% higher than the market value on the day.
Siemens share price, which reached a 5-year high of 154.34 on 12 July, was
falling before the announcement and continued to fall. It has picked up in
the last few days and closed at 130.4 on 8 August. Siemens share price
started the year just below 100.
“Demographic changes and increasing
demand for higher quality healthcare systems represent a constant driver for
growth in this sector,” stated Peter Löscher, Chief Executive Officer of
Siemens AG. “Complementing last year’s acquisitions of Diagnostic Products
Corporation and Bayer Diagnostics, this transaction secures our leading
position in the highly attractive healthcare industry. The impact of the
Dade Behring acquisition on Siemens EPS (earnings per share) is expected to
be accretive from fiscal year 2010.”
Erich R. Reinhardt, member of the
Managing Board of Siemens AG and President of Siemens Medical Solutions
added: “The acquisition of Dade Behring will create significant value for
our shareholders. It will strengthen Siemens’ position in the highly
profitable and high-growth healthcare sector.” The acquisition is expected
to increase Siemens Medical Solutions Group’s margin from 2009 onwards.
“The planned acquisition of Dade Behring complements our current
capabilities and offers us the unique opportunity to create an unparalleled
portfolio of products and services, and become world market leader in
comprehensive clinical laboratory diagnostics,” highlighted Erich R.
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