Fujifilm Corp. and Merck have entered into a definitive agreement under which Fujifilm will acquire the Merck BioManufacturing Network, a provider of contract manufacturing and development services for the biopharma industry. Financial details were not disclosed but one report valued the transaction at approximately $489.4 million. The agreement is subject customary closing conditions.

Fujifilm will acquire the two subsidiaries that comprise Merck’s BioManufacturing Network, Diosynth RTP and MSD Biologics Ltd., which includes Diosynth’s facilities in Research Triangle Park, NC and MSD’s Billingham, UK site. The acquisition includes manufacturing contracts, business support operations, and respective workforces. As part of the agreement with Fujifilm, Merck/MSD has committed to certain continued development and manufacturing activities with these two companies.

“Fujifilm continues to build upon its ongoing commitment to delivering pharmaceutical business,” said Shigetaka Komori, president and chief executive officer of Fujifilm Corp. “This acquisition provides an important addition to our pharmaceutical business with diverse capabilities and technical expertise in production of protein therapeutics.”

“When Merck/MSD combined its biopharmaceutical manufacturing services businesses in the U.S. and UK into the Merck BioManufacturing Network, we established one of the world’s leading biopharmaceutical contract manufacturing organizations,” said Willie A. Deese, executive vice president and president, Merck Manufacturing Division. “With this transaction, Merck/MSD becomes a key customer that will continue to benefit from the expertise and experience of the combined businesses in biologics development and manufacturing.”