With the announcement that Baxter International is selling its Industrial and Life Sciences division to VWR Corporation for approximately $400 million, Germany's E Merck (a leading European pharmaceutical and laboratory supply group) will get a stronger foothold in the US sector.
VWR, with 1994 sales of some $550 million, is the major distribution partner for Merck's laboratory chemicals in North America. The sales of the Baxter divisions operating in the same sector amount to around $450 million a year, says Merck.
Merck already has an equity stake in VWR, but now plans to increase this by around 15% to a total of 46%; its US-based subsidiary EM Industries will exercise its current warrants to purchase common stock for $11 per share and has agreed to purchase additional shares of VWR common stock for $12.44 per share, amounting to a total investment of some $230 million in equity and debt.
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