Reckitt Benckiser in talks to acquire Mead Johnson for $16.7bn
British consumer goods maker Reckitt Benckiser is in advance negotiations to acquire tye US infant formula manufacturer Mead Johnson Nutrition for $16.7bn.
The two companies confirmed media reports of the proposed offer from Reckitt Benckiser but stated that they were yet to reach a definitive agreement.
Reckitt Benckiser, which is the manufacturer of Dettol, has offered to pay $90 in cash for each of the Mead Johnson share.
A statement from Mead Johsnon read: “While it is the longstanding policy of Mead Johnson Nutrition not to comment on market speculation or rumors, in response to media reports and a subsequent statement released by Reckitt Benckiser plc (RB), the company confirms that it is in discussions with RB with respect to its proposal to acquire the outstanding shares of MJN for $90 per share in cash.”
The company added that there are no assurances that the ongoing discussions could culminate into a transaction. Mead Johsnon further stated that it will restrain from making additional comments on the matter unless and until a formal agreement has been inked or talks have been closed.
Reckitt Benckiser revealed its intentions to fund the possible deal in the form of cash and debt while retaining a robust investment grade credit rating.
With global headquarters in Glenview, Illinois, Mead Johnson is one of the major players in the pediatric nutrition market with a portfolio of 70 products that are sold across 50 markets globally.
Last week, Mead Johnson reported its net sales revenue in 2016 to be $3.74bn, a decline by 3% to its 2015 net sales revenue of $4.07bn.