Initial take on Bio-Techne acquisition

Research evidence excerpt

Initial take on Bio-Techne acquisition

Deutsche Bank

Research

Rating Company Date

Hold Merck KGaA 25 June 2026

Company Update

Europe

Germany

Reuters Bloomberg Exchange Ticker Price at 24 Jun 2026 (EUR) 140.10

MRCG.DE MRK GR GER MRCG

Price Target (EUR) 125.00

Healthcare

Life Sciences Tools & ADR ISIN 52-week range (EUR) 140.10102.80-

MKGAY US5893391004

Diagnostics

Valuation & Risks

Falko Friedrichs

Takeaway Summary Research Analyst

Merck has announced the acquisition of US-based life sciences company Bio- +49-69-910-36270

Techne for $11.3 billion (€9.9 billion), equating to a purchase multiple of

Jan Koch, CFA

approximately 26x EV/EBITDA based on this year's consensus estimates. Bio- Research Analyst

Techne appears to be a complementary fit for Merck's Life Sciences business and +49-69-910-47428

is expected to deliver high-single-digit sales growth, with an attractive EBITDA

Fynn Scherzler

margin currently in the mid-thirties. The transaction is expected to be immediately

Research Analyst

accretive to Merck's sales growth and EBITDA margin, but initially dilutive to

+49-69-910-40764

adjusted EPS before becoming accretive from year three onwards. Management

anticipates achieving €140 million in cost synergies by year three, with the deal Sachin Gadilingappa

expected to close by late 2026 or early 2027. Research Associate

We have a positive initial view on the deal, considering the complementary fit,

Price/price relative

attractive market positioning, and the robust profitability and growth prospects of

Bio-Techne, combined with Merck's strong track record of acquiring and 300

integrating US-based businesses and delivering on synergies. Our one point of 200

caution is that 20% of Bio-Techne's sales are exposed to academia—a market that 100

has been soft for some time.