Reckitt Benckiser Group has signed merger agreement with Mead Johnson
Reckitt Benckiser Group plc (“RB”), the world’s leading consumer health and hygiene company, announced on February 10 that it has signed a merger agreement with Mead Johnson Nutrition Company. Mead Johnson is a global leader in infant and children’s nutrition, develops, manufacturers, markets, and distributes more than 70 products in over 50 markets worldwide. In 2016, Mead Johnson had total assets of $4.1 billion and reported approximate earnings of $3.7 billion, with and EBITDA of approximately $1.0 billion. The merger is expected to realize annual cost savings of over $200 million by the end of the third full year.
Under the terms of the transaction, Mead Johnson shareholders will receive $90 in cash for each share of common stock, which equates to a total equity of $16.6 billion. This represents a 29% premium to the closing price of Mead Johnson as of February 1. Including Mead Johnson’s net debt of $1.2 billion (as of December 31, 2016), the total enterprise value of the transaction total $17.9 billion, which represents a multiple of 17.4x of Mead Johnson’s 2016 EBIDTA. The deal is expected to be financed through Bank of America Merrill Lynch, Deutsche Bank, and HSBC. The transaction is expected to close in the third quarter of 2017.
Read the full press release at www.rb.com
Below are highlights of additional Merger and Acquisition activity from the last week:
Medical Device M&A News: On February 6th, Merit Medical (Nasdaq: MMSI), a leading manufacturer and marketer of proprietary disposable devices, announced it has acquired products from Argon Medical Devices and Catheter Connections, Inc. The transactions were financed through a combination of cash and existing credit facilities, which total $48.0 million.
Read more at www.merit.com
Computer Security M&A News: On February 8th, Imperva, Inc. (Nasdaq: IMPV), which protects businesses confidential information and applications in the cloud, announced it has acquired the assets of Camouflage Software, Inc. Camouflage Software is a data masking company that replaces sensitive data with fully functioning fictional data that conforms to the logic embedded in the application.
Read more at www.imperva.com
