Business
RB to acquire Mead Johnson
RB to acquire Mead Johnson.
About this update from Reckitt Benckiser Group Plc
[{"type":"text","content":"\n \nRNS Number : 5562W Reckitt Benckiser Group PLC 10 February 2017 \n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION REGARDING RECKITT BENCKISER GROUP PLC\nFOR IMMEDIATE RELEASE\n10 February 2017\n \nReckitt Benckiser Group plc \nReckitt Benckiser Group plc to acquire Mead Johnson Nutrition Company\nRB to acquire Mead Johnson for $90 per share in cash, valuing Mead Johnson's equity at $16.6 billion\nTotal value of the transaction is $17.9 billion including Mead Johnson's net debt\nSignificant step forward in RB's journey as a global leader in consumer health\nThe Enfa franchise is the global #1 in the attractive infant and children's nutrition category\nMead Johnson brings significant R&D, quality, regulatory and specialist distribution capabilities to RB\nConsiderably strengthens RB's presence in developing markets, particularly China\nRB's expertise in consumer centric innovation, scaling global brands and commitment to driving performance will enable long term value creation\nGoal for Mead Johnson business to perform at the upper end of estimated category growth of 3-5% per annum in the medium to long term\nEstimated £200 million in annual cost savings by the end of the third full year\nExpected to be accretive to adjusted diluted EPS in the first full year and double-digit accretive by year 3\nReturn on invested capital projected to exceed RB's cost of capital by year 5\nCommitted debt financing in place; RB expects to retain a strong investment grade credit rating\nSubject to shareholder and regulatory approvals; expected completion by the end of Q3 2017\n \n \n \nRakesh Kapoor, Chief Executive Officer of RB, said: \n\"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.\nMead Johnson's geographic footprint s...