Sigma-Aldrich Corporation has announced today that it has completed its acquisition of the Proligo Group (Proligo) from Degussa AG. Terms of the proposed purchase were not disclosed. Proligo, a global supplier of key genomics research tools including custom DNA, custom RNA and phosphoramidite raw materials used for DNA and RNA synthesis, had 2004 sales of approximately $40 million. Nine months of Proligo's operating results will be added to Sigma-Aldrich's performance in 2005, increasing overall sales growth by roughly 2%.
"As we noted when we announced our intent to make this acquisition, the Proligo Group is another key step in our strategy to provide revolutionary technology tools that fully meet the research needs of scientists in the rapidly growing field of genomics," said David Harvey, Sigma-Aldrich's Chairman and CEO. "Proligo provides us with one of only four exclusive licenses to a key Massachusetts Institute of Technology patent application that covers the use of RNA in gene silencing, the new frontier in genomics research. It builds on our previously-announced partnership with Ingex, L.L.C. to develop and market their revolutionary new gene disruption technology (TargeTron(TM)); our exclusive licensing arrangement with Rubicon in whole genome amplification (GenomePlex(TM)); our recently announced agreement to serve as a scientific collaborator and distribution partner with The RNAi Consortium, comprised of The Broad Institute, seven world-class research institutions and four commercial partners; and our own internal R&D activities. Collectively, these investments enhance our position in the rapidly growing functional genomics market. We feel that they should permit us to participate as a global leader in the genomics and gene silencing research tools markets for years to come."
Proligo, headquartered in Boulder, Colorado, has manufacturing facilities in Boulder; Paris, France; Hamburg, Germany; Helios, Singapore; Kyoto, Japan; and Lismore, Australia. The company employs approximately 300 staff worldwide.
Sigma-Aldrich funded the acquisition with short-term debt. Including funding for this acquisition, Sigma-Aldrich expects to remain within its targeted debt to capital ratio of 30 to 35% during 2005.