Merck KGaA: Life Sci acquisition of consumable-led Bio-Techne (~$11.3bn, ~23x EV/EBITDA); EPS to be accretive by Year 3 (BARCe +4%)

Research evidence excerpt

Merck KGaA: Life Sci acquisition of consumable-led Bio-Techne (~$11.3bn, ~23x EV/EBITDA); EPS to be accretive by Year 3 (BARCe +4%)

Equity Research

European Pharmaceuticals, Biotechnology & Life Sciences

25 June 2026

Merck KGaA

Life Sci acquisition of consumable-

led Bio-Techne (~$11.3bn, ~23x EV/ First Look

MRCG.DE/MRK GR EQUAL WEIGHTEBITDA); EPS to be accretive by

European Pharmaceuticals,

Biotechnology & Life NEUTRAL

SciencesYear 3 (BARCe +4%)

Price Target EUR 130.00

Price (24-Jun-26) EUR 140.10$11.3bn acquisition of consumables-focused TECH. Set to

deliver immediate sales/EBITDA accretion, EPS accretion PotentialSource: Bloomberg,Upside/DownsideBarclays Research -7.2%

from year 3. BARCe EPS impact -8% /-5%/+4% in FY27/28/29E.

We expect deal to be well received by investors as Life Sci European Pharmaceuticals,

EBITDA rises to 54% group vs 48% prev. Post-deal ND/EBITDA BiotechnologyCharles Pitman-King,& Life SciencesCFA

+44 (0)20 3134 6023at c2.3x.

charles.pitman-king@barclays.com

Barclays, UK

Merck KGaA has announced the acquisition of Bio-Techne (TECH US, not covered), a leading

James Gordonprovider of life science research and analytical tools, at $73/share in cash (c36% premium to 1-

+44 (0)20 7116 2784

month VWAP), representing an EV of $11.3bn (c€9.9bn) and implying a CY2027E EV/EBITDA james.gordon@barclays.com

multiple of 23.2x pre-synergies, or ~17.5x including target run-rate cost synergies of €140m Barclays, UK

per year by year-3. The transaction will be funded through a mix of cash (~20%) and new

Yihan Li, PhD

USD/EUR debt (80% at avg 4-5% rate), per the company. Approved by Bio-Techne’s Board,

+44 (0)20 3555 3563

transaction remains subject to customary regulatory and shareholder approvals, and closing yihan.li@barclays.com