FDBusiness.com

Mead Johnson Sold in $17.9 Billion Deal

 Breaking News
  • Bord Bia’s 2018 Brexit Barometer Results The Irish Government has launched the Bord Bia 2018 Brexit Barometer, a comprehensive survey of 117 Irish food, drink and horticulture companies, representing 48% of the sector’s exporters to the United Kingdom. Over 100 senior industry representatives attended the launch in Bord Bia to hear the report findings. The purpose of the Brexit Barometer is to assess [...]...
  • Cargill Invests in Mouscron Facility to Meet Demand For Belgian Chocolate With the rapid rise in consumer demand for premium, high quality Belgian chocolate, Cargill has invested in a new liquid chocolate production line in its Mouscron production facility in Belgium. This investment increases the company’s capacity to produce milk and dark chocolate and creates up to 10 new local jobs. Cargill’s cocoa and chocolate business will [...]...
  • Heineken Makes Biggest Ever Investment in UK Pub Estate Heineken UK is making its largest ever annual investment in Star Pubs & Bars, investing £44 million during 2018. This investment is more than double the figure invested last year (£20 million) and brings Heineken’s total expenditure on pubs to almost £140 millioin over the past five years.Around a quarter of Star’s 2,900 pubs will [...]...
  • New Starter Culture Secures Mild and Creamy Soft Cheeses Chr. Hansen’s latest launch helps cheesemakers to produce soft cheese that maintains the desired taste and texture. The extension to the DVS® SSC series is the latest addition to Chr. Hansen’s soft cheese starter culture range. The product series now consists of four cultures and is designed to create soft cheese with a mild flavor and [...]...
  • TOP Develops Technology Platform For Dairy Farmers TOP from Wageningen in the Netherlands is developing a technology platform that enables dairy farmers to sell bottled milk from individual cows. With the technology it will be possible to pasteurize and package bottles of milk from individual cows. Dutch consumers will soon be able to buy milk from their very own favourite cow. In the [...]...

Mead Johnson Sold in $17.9 Billion Deal

Mead Johnson Sold in $17.9 Billion Deal
February 13
12:01 2017

Reckitt Benckiser Group, the world’s leading consumer health and hygiene company, is acquiring Mead Johnson Nutrition Company, a global leader in infant and children’s nutrition, for $16.6 billion. Total value of the transaction is $17.9 billion including Mead Johnson’s net debt.

The Mead Johnson name has been associated with science-based infant and children’s nutrition products for over 100 years. The company’s Enfa family of brands, including Enfamil infant formula, is the world’s leading franchise in infant and children’s nutrition. Mead Johnson supplies more than 70 products in over 50 markets worldwide.

In the year ended 31 December 2016, Mead Johnson reported net sales of $3.74 billion, of which 50% were generated in Asia, 17% in Latin America and 33% in North America/Europe. On a US GAAP basis, Mead Johnson reported earnings before interest and income taxes of $819 million, earnings before income taxes of $713 million and net earnings attributable to shareholders of $545 million. On a non-US GAAP basis, Mead Johnson reported earnings before interest and income taxes of $927 million and EBITDA of $1.03 billion.

Reckitt Benckiser has operations in over 60 countries, with headquarters in London, Dubai and Amsterdam, and sales in most countries across the globe. The company employs approximately 37,000 people worldwide. Mead Johnson’s infant and children’s nutrition business increases RB’s revenues in consumer health by approximately 90%, while its global Enfa franchise becomes RB’s largest Powerbrand.

Rakesh Kapoor, chief executive of Reckitt Benckiser, comments: “The acquisition of Mead Johnson is a significant step forward in RB’s journey as a leader in consumer health. With the Enfa family of brands, the world’s leading franchise in infant and children’s nutrition, we will provide families with vital nutritional support. This is a natural extension to RB’s consumer health portfolio of Powerbrands which are already trusted by millions of mothers, reinforcing the importance of health and hygiene for their families.”

He adds: “Mead Johnson’s geographic footprint significantly strengthens our position in developing markets, which will account for approximately 40% of the combined group’s sales, with China becoming our second largest Powermarket.”

The integration of RB’s and Mead Johnson’s businesses is expected to deliver cost savings of £200 million per annum by the end of the third full year following completion. These arise principally from removing duplication in back office functions and leveraging the enhanced scale of the combined business in the procurement of raw and packaging materials, advertising and promotional expenditure and other spend. One-off costs to achieve the savings are expected to be approximately £450 million. The acquisition is expected to be accretive to adjusted diluted earnings per share in the first full year following completion and double-digit accretive by year 3.

James Cornelius, chairman of Mead Johnson, says: “First and foremost, this transaction provides tremendous value to Mead Johnson Nutrition stockholders. Additionally, relative to the future growth and development of the Mead Johnson business, Reckitt Benckiser – with its strong financial base, broad global footprint, consumer branding expertise and dynamic business model – is an ideal partner. I have been part of the journey of Mead Johnson Nutrition from its days as an operating division of Bristol-Myers Squibb through the past eight years as an independent public company and now into this powerful new business combination. I fully expect Mead Johnson to flourish as an important new part of the RB organisation.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 25, 2018Packaged., The 7th Global Summit
  • September 5, 2018Int'l Food Products and Processing Technologies Exhibition (WorldFood Istanbul)
  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements