Merck KGaA completes generics divestment

Merck KGaA has completed the sale of its generics business to Mylan for the total sum of 4.9 billion euros (3.4 billion pounds).

The definitive agreement by Mylan to purchase Merck Generics – a business unit with almost 5,000 employees and sales of 1.8 billion euros in 206 – was originally signed in May 2007.

As part of the agreement, Mylan will be permitted to use the Merck name in relation to the aquired generics segment for two years.

The firm notes that the proceeds of this divestment will be booked in the fourth quarter, with this money to be used to pay off debts.

Robert J Coury, chief executive officer and vice-chairman of Mylan, said: “The Merck Generics business is even stronger than we expected and through the integration planning, we have confirmed that we truly share a common culture and values centered on quality, integrity, reliability and service.”

He added that Mylan is “thrilled” to welcome the former Merck employees to Mylan, with immediate and successful integration of the firm occurring as a result of much preparation in the months prior to the finalisation of the acquisition.

In May 2007, Merck described the deal with Mylan as the most convincing strategy for the business unit – a segment which accounted for 29 per cent of its sales during the 2006 financial year.