There are several reasons to acquire companies like growth, investment, innovation, synergy, elimination of a competitor, and supporting an organizations' business strategy. In terms of strategy, the acquisition of Millipore by Merck is an example of a perfect strategic acquisition. Dr. Arne Kusserow, Editor-in-Chief of G.I.T. Laboratory Journal talked to Dr. Bernd Reckmann, Head of the newly formed Merck Millipore division and Member of the Executive Board of Merck.

Mr. Reckmann, Millipore almost perfectly complements Merck's existing portfolio. Were there any conditions imposed by the authorities to clear the transaction?

B. Reckmann: No, this is a perfect fit. The acquisition is very complementary. There are only very, very small areas where we have an overlap in products. We became one of the leading global players in the life science market. We now have a much broader global reach than Millipore alone had before. So I think Merck gained many very exciting, highly innovative products. On the other hand we offer more opportunities for the Millipore products now, especially in distributing them through the Merck global network to customers everywhere in the world. Millipore specializes in growing markets, the whole business is driven by innovation. Millipore represents a strong brand, and the products have high margins which represents a great fit with Merck. I haven't met anyone who doesn't agree that this is a very logical and smart deal. Fortunately, there was absolutely no restriction, no problem with the authorities either in the US or in Europe. That was exactly what we expected.

How has Millipore been integrated into the Merck organizational structure?

B. Reckmann: Millipore transforms Merck Chemicals in a way that we will end with having two high-growth innovative businesses. One is the Life Science tools business which we now assemble as the "Merck Millipore" division, and the other is the high-tech business "Performance Materials". This comprises liquid crystals, pigments, cosmetics and other material-driven businesses. Inside of the Merck Millipore division we will have three different business units, which includes Bioscience, Lab Solutions and Process Solutions.

Process Solutions are the products for production in the biotech and pharmaceutical industry, including the consumables of Millipore and the media as well as chemicals. Lab Solutions includes the broad range of Merck reagents, but also the combination of our assay products, microbiological products, the lab water business and Millipore's process monitoring tool products which gives us the opportunity to create a leadership in the business of biological contamination. Bioscience includes products for research in academia and all pharmaceutical and other labs doing modern science and technology. I believe we can really build up something completely unique in the industries, and this is very exciting for me.

What does the Millipore acquisition mean for Merck Serono?

B. Reckmann: Merck Serono is our pharmaceutical business. This is a completely different business. Of course Merck Serono will be a customer for Merck Millipore, but I think that is a minor issue. It did not influence our considerations when we decided whether we would like to go for Millipore or not. But there is some overlap in technology, so we have a common basis of biotechnology, maybe with a different focus. And if you look for future perspectives I think we are working to some extent on the same topics and challenges. For example the work on bio markers, cellular fingerprinting and diagnostics are comparable in a broader sense in both, Merck Millipore and Merck Serono.

What does the acquisition mean for Merck's presence in North America?

B. Reckmann: I think we now have reached critical mass in North America. We always had difficulties there. In the chemical business we always have been underrepresented. We, of course, still have the name issue which we face, but now with combined businesses Merck Millipore will do 35 percent of its sales in North America.

Does this acquisition reflects a general trend to merge biotechnology, pharmaceutical and chemical businesses?

B. Reckmann: I believe that these industries have the main drivers in common. If you want to develop new drugs, and that is ultimately what our customers do, then you simply need more than a single discipline. Everything has become more complex today and you have to interact with complex networks. Otherwise you fail. Both the pharmaceutical and the biotech industry will face tremendous challenges in the next few years. We all know the health care discussions happening everywhere in the world. We all have to reinvent our business and our research to become more efficient. We have to refine our manufacturing processes to prevent costs. There will be an enormous pressure for changes in industry. Merck Millipore is in a very attractive position to help our customers manage this transformation. What we are doing, is really combining the strength of both organizations, to understand exactly what our customers need so that we can help them by providing services and solutions to transform their business on a global basis while adding value on each level of the process chain.