Merck KGaA: Life Sci M&A in line with strategy and financial criteria; Supports growth

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Merck KGaA: Life Sci M&A in line with strategy and financial criteria; Supports growth

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Merck KGaA

Life Sci M&A in line with strategy and

financial criteria; Supports growth

Maintain Rating: BUY | PO: 145.00 EUR | Price: 140.10 EUR

Merck announces intention to acquire Bio-Techne 25 June 2026

Merck announced intention to acquire Bio-Techne for $11.3bn EV (c23x 27E EV/EBITDA, Equity

or 17.5x post synergies). A larger Life Sci deal is in line with Merck’s previously cited

Sachin Jain, CFA >>

focus and within its financial framework. We see deal as strategically and financially Research Analyst

sensible, complementary across the value chain with expansion into multi-omics, spatial MLI (UK) s.jain@bofa.com

biology and CGT manufacturing, with a consumables focus (81% of sales) – see an

Charlie Haywood >>

overview of product portfolio. The bulk of the acquired business will fit within Merck’s Research Analyst

existing Discovery solutions business segment. Merck expects Bio-Techne to grow HSD MLI (UK) charlie.haywood@bofa.com

mid-term, strengthening current Life Sci organic sales guide of MSD-HSD. High single

Alexander Moore >>

digit growth is an acceleration from cons forecasting flat FY26, mid-sd FY27 growth. Research Analyst

Merck noted no revenue synergies are assumed with guidance, though expect to be MLIalexander.moore2@bofa.com(UK)

realised, mostly through geographic expansion. Deal is expected to be immediately Sales Keilah Carbonel-Deere >>

and EBITDA accretive with EPS accretion expected by year 3 after closing given cEur8bn Research Analyst

debt at 4-5% interest (low-sd% dilution to 27/28E). MLIkeilah.carbonel-deere@bofa.com(UK)

Deal terms and key financials

Merck’s proposal to acquire Bio-Techne at $73 per share (a 36% premium to Bio-