Billion dollar medicine

Siemens is to acquire all of the outstanding shares of Dade Behring for $77.00 per share in cash, or $7bn.

Siemens has entered into a merger agreement with Dade Behring under which it will acquire all of the outstanding shares of the company for $77.00 per share in cash, or $7bn.

As a result of the merger, Dade Behring will become a wholly-owned subsidiary of Siemens and all outstanding shares of Dade Behring common stock will be converted into the right to receive the same consideration paid in the tender offer.

The deal is expected to close in the second quarter of fiscal year 2008 subject to regulatory approvals and other customary closing conditions.

Dade Behring, headquartered in Deerfield, Illinois, has operations in 35 countries and serves more than 25,000 customers around the world. The company provides clinical laboratory equipment for routine chemistry testing, immunodiagnostics (including infectious disease testing), hemostasis testing and microbiology.

With around 6,400 employees, Dade Behring realised sales of approximately $1.7bn in fiscal year 2006 and an EBIT of $201m including a $21m restructuring expense.

‘Combined, Dade Behring and Siemens will have the potential to become uniquely positioned as the largest provider of clinical diagnostic products and services in the world,’ said Jim Reid-Anderson, Chairman, President and CEO, Dade Behring.