Merck Acquires Leading Manufacturer of Effect Pigments in China

Wed Sep 9, 2009 2:00am EDT

* Reuters is not responsible for the content in this press release.

DARMSTADT, Germany & SHANGHAI--(Business Wire)--
Merck KGaA announced today that it has acquired Suzhou Taizhu Technology
Development Co. Ltd. ("Taizhu"), a leading supplier of effect pigments located
in Taicang near Shanghai, China. With total revenues of more than € 14 million
in 2008 and 300 employees Taizhu is one of the biggest effect pigments companies
in the Chinese market. The acquisition is of high strategic importance to the
Merck pigments business. 

Within the scope of this transaction, Merck has acquired the production site of
Taizhu in Taicang, 40 km from Shanghai, as well as the entire sales and
marketing organization in China and abroad for a total consideration of € 28
million. 

Klaus Bischoff, Head of the Performance & Life Science Chemicals division at
Merck, commented: "The transaction is highly attractive for Merck because
Taizhu`s products complement our premium product portfolio with a range that
mainly serves the growing value-for-money market segment. In addition, Taizhu`s
customer base ideally complements our own. In recent years, Taizhu has built an
outstanding reputation as a reliable source of high-quality effect pigments." 

China is one of the world`s fastest growing markets and is forecasted to become
the second biggest effect pigment market by 2010, second only to the United
States. Merck's Chemicals business subsidiary has been operating in Shanghai
since 1997. 

About Merck Pigments

Merck is one of the world`s leading suppliers of effect pigments for the
coatings, plastics, printing, cosmetic, food and pharmaceutical industries.
Application possibilities range from cars to packaging and high-tech products to
building facades. More information about the range of products offered by Merck
can be found at: www.merck4pigments.com. 

About Merck

Merck is a global pharmaceutical and chemical company with total revenues of €
7.6 billion in 2008, a history that began in 1668, and a future shaped by
approximately 33,000 employees in 60 countries. Its success is characterized by
innovations from entrepreneurial employees. Merck's operating activities come
under the umbrella of Merck KGaA, in which the Merck family holds an
approximately 70% interest and free shareholders own the remaining approximately
30%. In 1917 the U.S. subsidiary Merck & Co. was expropriated and has been an
independent company ever since. 





Merck
Steffen Grimminger, +49-6151-72-7317 



Copyright Business Wire 2009

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