Merck : Acquires BioControl to Strengthen Position in Food Safety Testing

January 4, 2017

• The acquisition complements Merck's existing products in food pathogen testing
• Enables Merck to offer its customers complete workflow solutions for food pathogen testing

Darmstadt, Germany, January 4, 2017- Merck, a leading life science and technology company, today announced it has acquired BioControl Systems Inc., a global leader in food safety testing. The acquisition opens growth opportunities for Merck in thefood and beverage space; particularly in the U.S. Confidentiality has been agreed on the financial details of the transaction.

BioControl's established rapid detection technology and third- party validated testing platforms complement Merck's portfolio of instruments and consumables inits applied solutions business geared to the food pathogen testing workflow.

"BioControl's acquisition strengthens our ability to help customers protect the global food supply by providing an expansive portfolio of state-of-the-art testing technology," said Udit Batra, Member of the Merck Exec utive Board and CEO, LifeScience business. "BioControl's innovative assays and validated kits, when

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combined with Merck's strengths in mic robiology, filtration and e- commerc e will create a strong global provider aimed at solving tough challenges in the food pathogen testing spac e," he added.

The global spotlight on the importance of food safety has grown given the increased incidents of outbreaks and recalls with foodborne diseases often caused byconsuming a wide range of foods including undercooked meat, eggs, fresh produce and dairy produc ts contaminated by Salmonella, Listeria, E.coli O157H7 and Campylobacter. BioControl's produc t portfolio includes pathogen detection kits to identify these food poisoning bacteria in food and ingredients and its key customersinclude meat producers.

"Merck is the best home for Biocontrol, our customers and our employees," said Phil Feldsine, President and Chief Exec utive of BioControl. "Merck's global market presence as a leader in laboratory sciences will introduce BioControl's innovative,customer oriented solutions to a muc h broader base worldwide while providing existing customers with access to Merck's food safety produc t portfolio and expertise. The opportunity for BioControl to become part of a world class 350-year-old organization with a reputation for doing it the right way is very rewarding."

The acquisition is in line with the strategy of Merck's life science business to expand in key geographies, and provide a differentiated experience to customers in appliedsettings, including food and beverage safety testing. While the business will continue to focus on mic robial quality control solutions for pharmac eutical produc tion proc esses and products, an area where the business currently has leading market share, the acquisition will enable Merck to offer a complete food pathogen testing platform to its customers in the food and beverage safety testing market.

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Achelous Partners acted as financial advisor to BioControl on this transaction. Nixon Peabody LLP represented Merck in the transaction.

BioControl is one of the leading companies in innovative rapid mic robiology tests for food safety for more than 30 years. It offers a diverse third party validated product portfolio lines, which include industrial mic robiology testing, rapid detection methods for food-borne pathogens, the quantitative measurement ofmic roorganisms, and hygiene monitoring. The company primarily sells its products to food manufac turers, ingredient suppliers, contract testing labs and governmentlabs. BioControl is based in Bellevue, WA (U.S.), with over 100 employees worldwide. In FY 2015, it generated revenue of USD 34 million. For further details: visitwww.biocontrol.com

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Merck is a leading science and te chnology co mpany in healthca re, life science and performance m aterials. Around 50,000 employees work to further develop technologies that improve and enhance life - from biopharmaceutical therapies to treat cancer or m ultiple sclerosis, cutting-edge systems for scie ntific research and production, to liquid crystals for sm artphones and LCD televisions. In 2015, Merck generated sales of € 12.85 billion in 66 countries.

Founded in 1668, Merck is the world's oldest pha rma ceutical and chemical company. The fo unding family rem ains the majority owner of the publicly listed corporate group. Merck holds the global rights to the Merck nam e and brand. The only exceptions are the United States and Canada, whe re the company operates as EMD Serono, Millipore Sigm a and EMD Perform ance Materials.

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