Key Stats
Acquired by Merck KGaA in November 2015 for $17 billion
Final year revenue reached $2.79 billion in 2014
Served over 1.4 million customers worldwide across 40 countries
Offered more than 250,000 chemical and biochemical products
Employed approximately 9,600 people at the time of acquisition
Sigma-Aldrich Corp. operated as a life science and technology company that developed, manufactured, and distributed biochemicals and organic chemicals for scientific research. The company served pharmaceutical, biotechnology, industrial, and diagnostic customers through four research business units.
Headquartered in St. Louis, the company provided products used in genomic research, biotechnology, pharmaceutical development, and diagnostic manufacturing. Its global customer base included commercial laboratories, universities, hospitals, and governmental institutions.
The company operated worldwide with manufacturing sites and distribution centers serving researchers and technologists. Sigma-Aldrich products ranged from basic research chemicals to specialized biotech materials and custom synthesis services.
Sigma-Aldrich History
Midwest Consultants founded in St. Louis by brothers Aaron Fischer and Bernard Fischlowitz
Sigma Chemical Company formed to manufacture adenosine triphosphate
Alfred Bader and Jack Eisendrath founded Aldrich Chemical Company in Milwaukee
Sigma established subsidiary in London to expand European operations
Merger of Sigma Chemical and Aldrich Chemical created Sigma-Aldrich Corporation with $43 million in first-year sales
Acquired Biomakor in Israel to strengthen international expansion
Purchased Fluka in Switzerland, significantly expanding European presence
Acquisition of Supelco enhanced analytical and chromatography capabilities
Company reached $1 billion in sales milestone
Acquired Isotec and opened $55 million Life Science and High Technology Center in St. Louis
Purchased JRH Biosciences and Proligo Group, expanding genomics and cell culture product lines
Exceeded $2 billion in sales with record earnings
Acquired BioReliance to expand pharmaceutical services capabilities
Merck KGaA announced acquisition agreement for $140 per share
Merck KGaA completed $17 billion acquisition in November
Sigma-Aldrich Co-founders
Aaron Fischer
Co-founded Midwest Consultants in 1935 with his brother Bernard. The chemical engineer helped launch the consulting firm that became the parent company of Sigma Chemical.
Bernard Fischlowitz
Partnered with brother Aaron to establish Midwest Consultants. The chemical engineer helped build the foundation for what became Sigma Chemical Company.
Dan Broida
Hired as a chemical engineer from Washington University in St. Louis to manage Midwest Consultants. He formed Sigma Chemical Company as a division and guided its early development.
Alfred R. Bader
Founded Aldrich Chemical Company in Milwaukee in 1951 with Jack Eisendrath. The Austrian immigrant and Harvard chemistry graduate built Aldrich into a major research chemical supplier before the 1975 merger.
Jack Eisendrath
Co-founded Aldrich Chemical Company with Alfred Bader as the company’s attorney. He helped establish the business foundation that enabled Aldrich’s growth in research chemicals.
Sigma-Aldrich Revenue
The company demonstrated steady revenue growth throughout its history. From $43 million in its first year after the 1975 merger, Sigma-Aldrich expanded to reach $1 billion by 1999 and exceeded $2 billion by 2007.
Revenue performance reflected the company’s expansion through acquisitions and organic growth. The final year of independent operations in 2014 generated $2.79 billion in sales. This growth trajectory attracted Merck KGaA’s interest, leading to the acquisition that valued the company at $17 billion.
Sigma-Aldrich Acquisitions
The company pursued an aggressive acquisition strategy to expand its product portfolio and geographic reach. Key acquisitions included Biomakor in Israel in 1986 and Fluka in Switzerland in 1989, which strengthened international operations and added thousands of specialty chemicals to the product line.
Supelco’s acquisition in 1993 enhanced analytical and chromatography capabilities. The company added Riedel de Haen in 1997 to further expand its analytical product offerings. These moves positioned Sigma-Aldrich as a comprehensive supplier for laboratory research needs.
In 2001, the purchase of Isotec brought stable isotope production capabilities, while that same year saw a major investment in the $55 million Life Science and High Technology Center. The company acquired Ultrafine in 2004 for contract manufacturing services and Tetrionics for high potency pharmaceutical ingredients.
The acquisition of JRH Biosciences in 2005 significantly strengthened the cell culture product line for pharmaceutical and biotechnology industries. That same year, Proligo Group brought genomics research tools and capabilities. These strategic purchases helped Sigma-Aldrich serve the growing biotechnology sector.
Geographic expansion continued with Beijing Superior Chemicals acquisition in China, Iropharm in Ireland, and Pharmorphix in the UK during 2006. Additional acquisitions included Epichem Group in 2007 for materials science and semiconductor market capabilities, along with Molecular Medicine BioServices for viral manufacturing.
Later acquisitions focused on specialized capabilities. The company purchased Research Organics in 2012 and BioReliance, a toxicology and veterinary diagnostics company that previously belonged to Invitrogen. ChemNavigator joined in 2009 to provide chemical compound selection and procurement services. This acquisition strategy built a comprehensive portfolio of over 250,000 products and established Thermo Fisher Scientific and Merck Group as major competitors.
Sigma-Aldrich Competitors
The life science and laboratory supply industry featured several major players competing for market share. Thermo Fisher Scientific emerged as the largest competitor after acquiring Life Technologies for $13.6 billion in 2014.
| Competitor | Specialty |
|---|---|
| Thermo Fisher Scientific | Laboratory equipment, analytical instruments, reagents |
| VWR International | Laboratory supplies and distribution |
| Agilent Technologies | Chemical analysis, life sciences, diagnostics |
| Bio-Rad Laboratories | Life science research and clinical diagnostics |
| Waters Corporation | Analytical instruments and software |
| PerkinElmer | Diagnostics and life science products |
| Sartorius | Laboratory and pharmaceutical equipment |
| Danaher Corporation | Life sciences and diagnostics |
| Illumina | Genetic sequencing and analysis |
| Abbott Laboratories | Diagnostic products and healthcare |
Sigma-Aldrich Market Cap
The company maintained strong market valuation throughout its final years as a publicly traded entity. Trading under NASDAQ ticker SIAL, the stock price reflected investor confidence in the life science sector’s growth potential.
The final acquisition valued Sigma-Aldrich at $17 billion, representing a 37% premium above the September 2014 closing price. This valuation reflected the company’s established market position, extensive product portfolio, and strong e-commerce platform. Following the November 2015 acquisition by Merck Group, the company integrated into the Life Science business segment, operating as MilliporeSigma in the United States and Canada.
FAQs
What happened to Sigma-Aldrich?
Merck KGaA acquired Sigma-Aldrich for $17 billion in November 2015. The company now operates as part of Merck’s Life Science business, branded as MilliporeSigma in the United States and Canada.
When was Sigma-Aldrich founded?
Sigma-Aldrich Corporation formed in 1975 through the merger of Sigma Chemical Company and Aldrich Chemical Company. However, Sigma Chemical’s roots trace back to 1946, and Aldrich Chemical was founded in 1951.
Who founded Sigma-Aldrich?
The merger combined two companies with different founders. Sigma Chemical stemmed from Midwest Consultants, founded by Aaron Fischer, Bernard Fischlowitz, and Dan Broida. Alfred Bader and Jack Eisendrath founded Aldrich Chemical Company in 1951.
What products did Sigma-Aldrich make?
The company manufactured and distributed over 250,000 chemicals, biochemicals, and laboratory products. Products included research reagents, biochemicals, organic chemicals, cell culture materials, genomics tools, and custom synthesis services for research and industrial applications.
Why did Merck acquire Sigma-Aldrich?
Merck sought to strengthen its life science business and gain Sigma-Aldrich’s strong e-commerce platform, extensive product portfolio, and global reach. The acquisition created a comprehensive supplier for biotech production and research markets.
