Merck KGaA to Exit Orthopedics Joint Venture to Focus on Core Businesses

18-Dec-2003

Merck KGaA announced that it will sell its 50 percent stake in the European orthopedics joint venture BioMer C.V. for USD 300 million to its partner, Biomet Inc. of Warsaw, Indiana.

Sale of the stake in the joint venture is expected to be completed in the first quarter of next year and will result in exceptional income in 2004 for Merck of about USD 70 million. Finalization of the sale is subject to clearance by European antitrust authorities.

Established in January 1998 in Dordrecht, Netherlands, BioMer C.V. is the holding company of Biomet-Merck, the joint European orthopedics business of Biomet Inc. and Merck. The joint venture is represented in 17 European countries and has 1,574 employees. In the fiscal year ended April 30, 2003, Biomet-Merck achieved sales of USD 313 million.

"In more than five years of successful collaboration, Biomet has always been a professional and competent partner," said Prof. Bernhard Scheuble, Chairman of the Executive Board of Merck KGaA. "We finally accepted this offer as an opportunity to move forward with our goal to focus on our own core businesses."

As a 50-50 joint venture, Merck did not consolidate the sales of Biomet-Merck and was not involved in the day-to-day management of the business. For this reason, Merck does not expect any changes for customers and employees when Biomet Inc. assumes full ownership of the European business.

https://www.chemeurope.com/en/news/32966/merck-kgaa-to-exit-orthopedics-joint-venture-to-focus-on-core-businesses.html