Reckitt shakes hands on merger agreement with Schiff Nutrition

Consumer goods giant Reckitt Benckiser Group has signed a definitive merger agreement with healthy snack maker Schiff Nutrition International.

Consumer goods giant Reckitt Benckiser Group has signed a definitive merger agreement with healthy snack maker Schiff Nutrition International.

If Schiff's shareholders agree to the deal, they will tender their shares to Reckitt's previously announced cash offer of $42.00 per share, valuing Schiff at $1.4bn. The offer expires on December 14th.

Reckitt plans to pay the consideration with cash and existing credit facilities and said the transaction is expected to be immediately accretive to earnings on an adjusted basis.

Rakesh Kapoor, Reckitt Benckiser Chief Executive Officer, said: "We are very pleased to have reached a mutually beneficial agreement with Schiff and are

excited to enter the $30bn global vitamins, minerals and supplements market with such a strong portfolio of high quality branded business in the USA. Schiff's portfolio is an excellent fit with our strategic focus on health and hygiene."

"The sub-categories within which Schiff operates have strong growth momentum and to this we expect to combine Reckitt Benckiser's strong go to market

capabilities as well as proven skills in branding, innovation and consumer communication andeducation."

"The integration process will be undertaken promptly following completion of the transaction, so that the business can continue its growth trajectory with

minimum disruption and realize synergies as soon as possible. Reckitt Benckiser expects the tender offer to close before the end of calendar year

2012."

Shiff last announced that it has indicated projected net sales of around $385m and forecast proforma EBITDA (earnings before interest, tax, depreciation and amortisation) of approximately $84.6m for the fiscal year ending May 31st 2013.

Schiff's vitamin, minerals and supplements product portfolio includes a number of market leading brands in the specialist product category in the US,

including its MegaRed prouct, which is ranked number 1 in the healthy heart segment.

NR

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
6 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
2 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

Share tips of the week – 3 February 2023
Investments

Share tips of the week – 3 February 2023

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages
3 Feb 2023
The best one-year fixed savings accounts - February 2023
Savings

The best one-year fixed savings accounts - February 2023

Earn almost 5% on one-year fixed savings accounts.
6 Feb 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
6 Feb 2023