Business

Siemens to take over Dade Behring for US$7bn

9 August 2007

Siemens has further strengthened its diagnostics capabilities with its merger agreement with US-based Dade Behring, Inc. The planned acquisition has a total transaction volume of approximately US$7 billion (about €5 billion).

Dade Behring, headquartered in Deerfield, Illinois, has 6,400 employees and operations in 35 countries. It provides clinical laboratory equipment and integrated solutions for routine chemistry testing, immunodiagnostics (including infectious disease testing), haemostasis testing and microbiology. With its approximately 6,400 employees, Dade Behring realized sales of approx. US$1.7 billion in fiscal year 2006.

The deal, which is expected to be finalised in the second quarter of fiscal year 2008, follows the acquisition of Bayer's diagnostics division and Diagnostic Products Corp. in the last year. The announced price for Dade Behring was nearly 40% higher than the market value on the day. Siemens share price, which reached a 5-year high of 154.34 on 12 July, was falling before the announcement and continued to fall. It has picked up in the last few days and closed at 130.4 on 8 August. Siemens share price started the year just below 100.

“Demographic changes and increasing demand for higher quality healthcare systems represent a constant driver for growth in this sector,” stated Peter Löscher, Chief Executive Officer of Siemens AG. “Complementing last year’s acquisitions of Diagnostic Products Corporation and Bayer Diagnostics, this transaction secures our leading
position in the highly attractive healthcare industry. The impact of the Dade Behring acquisition on Siemens EPS (earnings per share) is expected to be accretive from fiscal year 2010.”

Erich R. Reinhardt, member of the Managing Board of Siemens AG and President of Siemens Medical Solutions added: “The acquisition of Dade Behring will create significant value for our shareholders. It will strengthen Siemens’ position in the highly profitable and high-growth healthcare sector.” The acquisition is expected to increase Siemens Medical Solutions Group’s margin from 2009 onwards.

“The planned acquisition of Dade Behring complements our current capabilities and offers us the unique opportunity to create an unparalleled portfolio of products and services, and become world market leader in comprehensive clinical laboratory diagnostics,” highlighted Erich R. Reinhardt.

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