Merck KGaA has agreed to acquire U.S. biotech supply company Millipore Corp. (MIL) in a $7.2 billion deal that includes the assumption of debt.
In a statement, Merck, which is not related to the U.S. company Merck & Co. (MRK), said it would pay $107 per share, a 13% premium to Friday's closing price of $94.41.
Millipore has two units. One produces products used in research and development, while the other makes products to help process pharmaceutical and biotechnology drugs.
Merck said it expects the deal to result in about $100 million in savings within three years. The deal is expected to close in the second half of 2010.
The deal will require antitrust approval as well as approval from Millipore shareholders.