Siemens have announced they are to acquire US-based clinical laboratory diagnostics company, Dade Behring in a deal worth Euros 5bn.
Dade Behring provides clinical laboratory equipment and integrated solutions for routine chemistry testing, immunodiagnostics (including infectious disease testing), haemostasis testing (process whereby bleeding is halted) and microbiology.
They currently have operations in 35 countries, including 18 European nations, and serve more than 25,000 customers worldwide.
Siemens says the move, announced last week, forms part of its strategy to become the "global leader in full-service diagnostics, offering imaging diagnostics, clinical laboratory diagnostics and healthcare IT solutions".
The merger agreement, announced last week, means that Siemens becomes one of the three of the largest diagnostics firms, following the recent acquisitions of Diagnostics Products Corporation and Bayer Diagnostics.
Siemens AG’s chief executive officer, Peter Löscher, said: “Demographic changes and increasing demand for higher quality healthcare systems represent a constant driver for growth in this sector. Complementing last year’s acquisitions of Diagnostic Products Corporation and Bayer Diagnostics, this transaction secures our leading position in the highly attractive healthcare industry.”
Siemens intends to acquire all outstanding shares of Dade Behring by submitting a cash offer to the Dade Behring shareholders of US$77 per common share.
Siemens is expected to commence a tender offer for any and all outstanding shares of Dade Behring common stock by 8 August.
The board of directors of Dade Behring have voted unanimously to recommend to holders of Dade Behring common stock that they tender their shares in the tender offer.
As a result of the merger, Dade Behring will become a wholly-owned subsidiary of Siemens. Their 6400 employees will continue to work from their offices, and will help with development and user support for Siemens’ full diagnostics services range.
Dade Behring’s president and CEO, Jim Reid-Anderson, said: “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.
“We will continue to serve our clinical laboratory customers with the same care and commitment that we always have, by providing innovative products and outstanding service that meets their needs. Dade Behring’s customer excellence business strategy has been the foundation of our success, and as part of Siemens Medical Solutions Diagnostics, the combined businesses will continue to follow that same strategy into the future.”
Completion of the merger is expected in the second quarter of fiscal year 2008. In 2006, Dade Behring made earnings before tax of US$201m and Siemens hope to see an increase in their profit margins from 2009 onwards.
Erich Reinhardt, president of Siemens Medical Solutions, said: “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.”