Germany’s Merck KGaA said Thursday it struck a deal to acquire U.S. lab-tools supplier Bio-Techne for $11.4 billion, marking the Darmstadt-based life-sciences and chemicals group’s largest acquisition in recent years.
Merck offered $73 a share in cash for Minneapolis-based Bio-Techne, a price representing a 24% premium to the stock’s closing price on Wednesday. The deal gives Bio-Techne an enterprise value of about $11.3 billion, according to Merck’s statement.
The proposed acquisition represents the first major strategic move by Kai Beckmann, Merck’s newly appointed chief executive, to bolster the company’s life-science business. Bio-Techne supplies antibodies, proteins, and analytical instruments used in drug discovery and diagnostic testing.
Merck said the deal will be funded through a combination of existing cash and new debt. The transaction is subject to regulatory authorizations and approval by Bio-Techne shareholders.
The Dow Jones Industrial Average closed at 51,848.9 on Thursday, according to FRED data.
The acquisition follows a series of other large pharmaceutical and life-science tool deals in recent weeks. MSI previously reported that GSK agreed to purchase Boston-based cancer drug developer Nuvalent for $10.6 billion earlier this month, and Roche paid $700 million upfront in a blood-cancer drug deal with Nurix.