Lehman Brothers Collection - Contemporary Business Archives

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Lehman Brothers Collection

Twentieth-Century Business Archives

Merck & Co., Inc. Deal - Lehman Brothers Collection

Merck & Co., Inc.

Company Deal$4.00 convertible second preferred stock
Transaction TypeConvertible Second Preferred Stock
Deal DescriptionMerck & Co., Inc., initially added the net proceeds from this transaction to its general funds, which were to be available for capital expenditures, working capital, and other corporate purposes. The expansion of production and sales required larger investments in inventories and accounts receivable. Furthermore, additional vitamin, antibiotic, and cortisone production and finishing facilities were expected to have been completed during the following months at the Cherokee Plant. Construction had been authorized for additional research, production, and related service facilities at the Rahway and Cherokee Plants. The company's intensive research and development program may have resulted in a need for still further expansion of production facilities in the future.
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