Sigma-Aldrich seeks more acquisitions - chief exec

19 June 2007 15:12  [Source: ICIS news]

TORONTO (ICIS news)--US fine chemicals and bioscience firm Sigma-Aldrich is planning further acquisitions this year and beyond, chief executive Jai Nagarkatti said on Tuesday.

 

Sigma was extremely profitable with annual return on equity at over 20% and would generate some $350m (€263m) in cash this year alone, part of which would go to acquisitions, Nagarkatti told an investor conference in London. 

 

“We fully expects to add more acquisitions later this year,” he said, but did not disclose details about specific targets.

 

The company’s core markets offered opportunities to grow, he said.

 

Sigma, based in St. Louis, Missouri, supplies biochemical and organic chemical products to the scientific and genomic research market. It also makes fine chemicals.

 

The research market, accounting for 72% of Sigma’s revenues, was worth an estimated $9bn with recent annual growth rates of about 2-3%, Nagarkatti said. Sigma’s market share is about 14%, he added.

 

In the fine chemicals market, Sigma was among the top suppliers. The market was worth about $50bn with growth rates of 2-3%/year.

 

That market was marked by acquisitions and mergers and also the emergence of Indian competitors in the US and Europe, said Nagarkatti.

 

($1 = €0.75)


By: Stefan Baumgarten
+1 713 525 2653



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