Dividend Aristocrats In Focus Part 30: Sigma-Aldrich

In part 30 of the 54-part Dividend Aristocrats In Focus series, I take a closer look at the growth prospects and competitive advantages of Sigma-Aldrich (Nasdaq: SIAL). Sigma-Aldrich is a diversified chemical manufacturer. The company makes biochemical, organic chemical, chromatography products, and diagnostic products. Sigma-Aldrich has increased its dividend payments for 39 consecutive years. The company has a market cap of about $16 billion.German pharmaceutical giant Merck & Co (NYSE: MRK) recently announced plans to acquire Sigma-Aldrich for $140 per share. The deal is expected to close in mid 2015. Sigma-Aldrich's share price jumped significantly on the news and currently trades at a price of about $135, just below the acquisition price. This article will cover the business prospects of Sigma-Aldrich as a standalone business to give investors an idea of what makes the company so valuable for Merck & Co, but first, we will take a look at the German Merck acquisition.Merck AcquisitionMerck plans to acquire Sigma-Aldrich to boost its life sciences division. Pharmaceutical companies are trimming costs by limiting the number of suppliers they work with. Merck will strengthen its competitive position by acquiring Sigma-Aldrich to gain access to its chemical research and development acumen.In addition, the acquisition gives Merck a leg up in its mediocre research and development division. The company has made a point to increase research and development of new... Read more