British firm Reckitt Benckiser is planning to expand its business with the addition of a global baby food-maker. Reckitt Benckiser apparently is willing to pay about $16.7 billion just to get its hands on Mead Johnson Nutrition, which is widely known as the maker of Enfamil infant formula.
Chicago Tribune reported that Reckitt Benckiser confirmed speculations that it was trying to convince Mead Johnson Nutrition to agree to a transaction pursuant to which the British firm will acquire the global baby food-maker. There has been no update as to whether the two companies have reached an agreement, but Reckitt Benckiser seems confident that it would be able to buy Mead Johnson Nutrition.
Reckitt Benckiser is widely known for distributing different types of household products. It distributions products under several brands, including Dettol, Durex, Air Wick, Scholl, Nurofen, Vanish, Harpic, Lysol, Veet, Finish, Strepsils, Cillit Bang, Mucinex, Gaviscon, Mortein, Clearasil and Woolite, around the globe.
Reckitt Benckiser is willing to pay investors who hold Mead Johnson Nutrition shares $90 a piece. The supplier of baby food would not be such an unusual addition to Reckitt Benckiser's brand. The British firm has slowly expanded into drugs and other consumer goods throughout the years.
However, as with most acquisitions, it is not clear whether Reckitt Benckiser plans to execute several changes that could impact Mead Johnson Nutrition's branding, operations and workforce. Mead Johnson Nutrition refused to comment on how the transaction will affect its workers.
Susquehanna International Group Analyst Pablo Zuanic believes that the companies have already worked out some of the nuanced parts of the transaction. Mead Johnson Nutrition and Reckitt Benckiser will now just have to formally announce the transaction.
Reuters reported that industry experts have long been speculating about the company that will successfully snap up Mead Johnson Nutrition. The baby food supplier has long been seen as an attractive takeover target because of its accomplishment in penetrating China, Latin America and the United States.
Jobs & Hire previously reported that increased number of company mergers is expected under President Donald Trump.