Sigma-Aldrich to Acquire Cell Marque to Bolster IHC Business

Zacks

Sigma-Aldrich Corporation (SIAL) announced that it has agreed acquire Cell Marque Corporation in order to strengthen its diagnostic health capabilities. With this deal, Sigma hopes to better serve its immunohistochemistry (IHC) customers.

The agreement is expected to close by the end of 2014 subject to regulatory approvals and other customary closing conditions. Terms of the deal were not disclosed.

Cell Marque, based in Rocklin, CA, makes antibody reagents and kits. It employs about 90 people and produces validated, fit-for-purpose antibodies and IHC staining kits for pathologists and clinicians focused on patient management. The company, which is well known for IHC and high-quality products, also possesses technical expertise.

According to Sigma-Aldrich, the strong portfolio of Cell Marque will complement and broaden its diagnostic health reach. Cell Marque's expert knowledge and experience in the design, validation and manufacturing of in vitro diagnostic antibodies for ICH will add to Sigma-Aldrich’s portfolio enabling it to provide greater value to current and new customers alike. Sigma-Aldrich expects this acquisition to be neutral to mildly accretive to EPS in 2015.

Last month, Merck KGaA (MKGAF) announced a definitive agreement to acquire Sigma-Aldrich for $140 per share in cash, or a total of $17 billion. This record-breaking acquisition by Merck KGaA promises a strong leap for the life sciences business and an increase of its presence in North America and the fast-growing markets in Asia. Merck KGaA will be able to enrich its portfolio with the 10,000+ products that Sigma-Aldrich offers along with a leading e-commerce platform in the industry.

Sigma-Aldrich’s currently carries Zacks Rank#3 (Hold).

However, better-ranked stocks in the chemicals-specialty industry include Globe Specialty Metals Inc. (GSM) and Flexible Solutions International Inc. (FSI). Both the companies carry a Zacks Rank #2 (Buy).

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