Sigma-Aldrich genomics to be boosted by Proglio purchase

Proligo, a global supplier of key genomics research tools including custom DNA, custom RNA and phosphoramidite raw materials used for DNA and RNA synthesis, had 2004 sales of approximately $40 million.

Depending on the closing date for the transaction, as much as nine months of Proligo’s operating results will be added to Sigma-Aldrich’s performance in 2005, increasing overall sales growth by roughly 2%.

“We expect this investment to permit us to participate as a global leader in the genomics and gene silencing research tools markets for years to come,” said David Harvey, Sigma-Aldrich’s chairman and CEO.

Proglio will provide Sigma-Aldrich with an exclusive license to a patent application covering the use of RNA in gene silencing. Sigma-Aldrich will use this in its partnership with Ingex to develop TargeTron gene disruption technology, in its licensing arrangement with Rubicon for GenomePlex in genome amplification, and for internal R&D activities.

Sigma-Aldrich expects to fund the acquisition with short term debt. Both Standard and Poor’s and Moody’s considered the proposed transaction and its terms in recently reaffirming the company’s investment grade debt ratings. The company fully expects to remain within its targeted debt to capital ratio of 30-35% after the acquisition.

The transaction has been approved by the boards of directors of both companies and, subject to regulatory approval in Germany and other customary terms and conditions, is expected to close early in the second quarter of 2005.