Reckitt Benckiser, Not Bayer, to Acquire Schiff

SLOUGH, ENGLAND Reckitt Benckiser Group LLC last week announced an agreement to acquire Schiff Nutrition International, Inc. for $42 per share, besting a previous $1.2 billion offer from Bayer AG.

Schiff, the supplier of branded vitamins, nutrition supplements and nutrition bars, is valued at $1.4 billion under the new deal, said Reckitt Benckiser, the global consumer goods company with such health and hygiene brands as Mucinex, Scholl, Lysol and Veet.  

Schiff previously intended to sell itself for $34 per share to a subgroup of Bayer AG, but that pact allowed the Salt Lake City, Utah-based company to entertain an alternative offer for 30 days.

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," said Rakesh Kapoor, CEO of Reckitt Benckiser, in a statement.

Reckitt Benckiser, based in Slough, England, plans to finance the acquisition with cash and existing credit facilities and anticipates the tender offer will close before the end of the year.

Fast-growing Schiff reported net sales of $259 million for the one-year period ending May 31, 2012 and forecasts growth between 43 percent and 46 percent for its next fiscal year. Reckitt Benckiser expects the acquisition to be immediately accretive to earnings on an adjusted basis.