Merck KGaA Plans $4 Billion Bond Sale to Fund SpringWorks Acquisition

Merck KGaA plans to sell $4 bln of bonds to fund its acquisition of SpringWorks Therapeutics. The deal will be split into four parts with maturities ranging from 3 to 10 years. Proceeds will be used to refinance temporary debt for the $3.9 bln acquisition. The company has asked banks to arrange calls with investors starting Monday. Merck KGaA expects the acquisition to close in the second half of the year.

Merck KGaA, a German pharmaceutical and electronics conglomerate, is set to issue around $4 billion in US investment-grade bonds to finance its acquisition of SpringWorks Therapeutics Inc. According to sources familiar with the matter, the deal will be structured into four parts, with maturities ranging from three to ten years. Proceeds from the bond sale will be used to refinance the temporary debt incurred during the $3.9 billion acquisition of SpringWorks, a biopharmaceutical company [1].

The company has requested that banks including Barclays Plc, BBVA SA, Bank of America Corp., JPMorgan Chase & Co., and Societe Generale SA arrange calls with bond investors starting on Monday. Representatives for JPMorgan, Bank of America, and Barclays declined to comment, while the other firms were not immediately available for comment. Merck KGaA has not yet commented on the matter outside of European business hours [1].

This bond sale comes shortly after Merck KGaA lowered its full-year sales growth forecast, citing a weaker dollar and a slowdown in its electronics business. The company had previously indicated that it expects the acquisition of SpringWorks to close in the second half of this year [1].

In the second quarter of 2025, Merck KGaA reported a 4.6% organic EBITDA pre growth, driven by increased sales of multiple sclerosis and oncology drugs, as well as continued demand for semiconductor materials. The company now expects 2025 organic EBITDA pre growth of 4% to 8%, up from its previous forecast of 2% to 7% [2].

The acquisition of SpringWorks Therapeutics, completed on July 1, 2025, has expanded Merck KGaA's rare tumor pipeline. On July 18, the European Commission conditionally approved Ezmekly (mirdametinib), developed by SpringWorks, for treating inoperable plexiform neurofibromas [2].

References:

[1] https://www.bloomberg.com/news/articles/2025-08-11/merck-kgaa-is-said-to-plan-4-billion-bond-sale-to-fund-purchase
[2] https://www.investing.com/news/earnings/merck-kgaa-lifts-2025-profit-outlook-after-strong-drug-ai-material-sales-in-q2-4175019