Reckitt Benckiser pursuit of Schiff Nutrition a success; companies sign definitive merger agreement
SLOUGH, England — Reckitt Benckiser successfully wrapped up its pursuit of Schiff Nutrition on Friday with the signing of a definitive merger agreement in a deal valued at $1.4 billion. Bayer officially relinquished its proposed acquisition on the same day.
“We are very pleased to have reached a mutually beneficial agreement with Schiff and are excited to enter the $30 billion global vitamins, minerals and supplements market with such a strong portfolio of high-quality branded business in the USA," stated Rakesh Kapoor, Reckitt Benckiser CEO. "Schiff’s portfolio is an excellent fit with our strategic focus on health and hygiene, where in health care in the [United States] we already have Mucinex, Delsym, Cepacol and Durex as major brands.”
Reckitt Benckiser expects the tender offer to close before the end of calendar year 2012.
"Bayer continues to believe that the transaction would have represented a logical and strategic addition for its Consumer Care business," the company stated in a press release issued Friday. "However, [Bayer] came to the conclusion that entering into a competitive bidding process would have resulted in a transaction price outside Bayer’s set financial criteria."
Bayer received a breakup fee of $22 million from Schiff, per the initial merger agreement between those two companies.