A major manufacturer of hygienic products Reckitt Benckiser Group (RB) announced the purchase of baby food manufacturer Mead Johnson Nutrition.
As the press-service of the company, British RB will acquire Mead Johnson for $ 90 per share in cash, estimating net worth of $ 16.6 billion. The total transaction is valued at $ 17.9 billion, taking into account debt Mead Johnson. RB undertakes to repay the $ 1.2 billion debt of the British manufacturer.
HSBC Bank, Bank of America Merrill Lynch and Deutsche Bank have provided loans to finance the operation.
Merge RB and Mead Johnson will help companies to save up to £ 200 million a year. The manufacturer expects revenue to increase by 10% over the next three years. According to forecasts, the return on invested capital will exceed the value of RB Capital 5 years.
Note that Reckitt Benckiser Group in 2010 acquired the rights to the popular brand of condoms – Durex. Experts believe that the merger with the manufacturer of baby food is risk diversification.
Mead Johnson is a global leader in infant and child nutrition. In 2016 the company’s revenue was $ 3.7 billion.