Merck KGaA's 4.9B-euro sale of generics ops to Mylan completes

Darmstadt, Germany-based drugmaker Merck KGaA says that it has completed the sale of its worldwide generics business to Mylan Laboratories of the USA (Marketletters passim). Closing was accomplished via a purchase agreement whereby Mylan acquired all Merck Generics companies throughout the world for 4.9 billion euros ($7.18 billion).

Proceeds of the sale will be booked in the fourth quarter. As previously announced, Merck intends to use the funds to pay down debt.

As part of the transaction, Mylan has the right to use the Merck name in connection with the acquired business for a transitional period of up to two years after closing. Merck Generics generated 1.82 million euros of sales in 2006 and had nearly 5,000 employees.