Merck KGaA Bio-Techne acquisition expected to be accretive to EBITDA (pre) immediately and accretive to EPS (pre) by Year 3

Research evidence excerpt

Merck KGaA Bio-Techne acquisition expected to be accretive to EBITDA (pre) immediately and accretive to EPS (pre) by Year 3

J P M O R G A N Europe Equity Research

25 June 2026

Merck KGaA

Bio-Techne acquisition expected to be accretive to Not Rated

EBITDA (pre) immediately and accretive to EPS (pre) MRCG.DE, MRK GR

by Year 3 Price (24 Jun 26):€139.55

This morning, Merck KGaA announced the acquisition of Bio-Techne for $11.3bn European Pharmaceuticals &

(€9.9bn), which provides recombinant proteins to the Life Science industry. The Biotechnology

overall Bio-techne business has increased sales at a 9% CAGR from 2019-25 and Richard Vosser AC

Adjusted Operating Profit at an 8% CAGR from 2019-25 and is expected to grow (44-20) 7742-6652

sales in the high single digits over the medium term. Merck therefore expects the richard.vosser@jpmorgan.com

J.P. Morgan Securities plc

deal to strengthen the outlook for Merck’s Life Science business, which has a mid-

Sophia Graeff Buhl Nielsenterm guidance for mid-single to high single-digit sales growth, and to be accretive

(44-20) 7742-3918

to EBITDA (pre) immediately after closing, and generate €140m of cost synergies sophia.graeffbuhlnielsen@jpmorgan.com

by Year 3 after closing (which is expected by end-2026/early 2027). The deal will J.P. Morgan Securities plc

be financed using a mixture of cash (~€2bn), USD debt (~€5bn) and EUR debt Zain Ebrahim

(~€3bn), with an expected average interest cost of 4%-5%. Including the synergies (44-20) 3493-1163

and the cost of financing, Merck expects the deal to be accretive to EPS (pre) by zain.ebrahim@jpmorgan.com

Year 3 after closing (i.e., 2029/2030). J.P. Morgan Securities plc

Khushi Bihani

(91-22) 6157-4103• Bio-Techne brings: (1) a portfolio of growth factors, antibodies, and