Reckitt Benckiser Group acquires Mead Johnson Nutrition Company

Reckitt Benckiser Group acquires Mead Johnson Nutrition Company

A major step forward in consumer health

Reckitt Benckiser Group plc has signed a merger agreement with Mead Johnson Nutrition Company under which Mead Johnson shareholders will receive $90 per share in cash.

The acquisition will take RB into a global market leadership in consumer health. The addition of the Enfa family of brands, the world’s leading franchise in infant and children’s nutrition 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.

Mead Johnson’s geographic footprint will significantly strengthen our position in developing markets, which account for approximately 40% of the combined group’s sales.

RB’s deep understanding of consumer needs and its expertise in scaling global brands will deliver significant growth for the Mead Johnson portfolio.

The transaction is subject to shareholder and regulatory approvals. The boards of RB and Mead Johnson have both unanimously approved the transaction and will recommend that their respective shareholders vote in favour.

About RB

RB is the world’s leading consumer health and hygiene company. The company has operations in over 60 countries, with headquarters in London, Dubai and Amsterdam, and sales in most countries across the globe. The company employs approximately 37,000 people worldwide.

Led by a purpose of providing innovative solutions for healthier lives and happier homes, RB is amongst the top 10 companies listed on the London Stock Exchange. It is the global No 1 or No 2 in the majority of its fast-growing categories, driven by an exceptional focus on innovation. RB’s health, hygiene and home portfolio is led by its global Powerbrands including Nurofen, Strepsils, Gaviscon, Mucinex, Durex, Scholl, Clearasil, Lysol, Dettol, Veet, Harpic, Cillit Bang, Mortein, Finish, Vanish, Calgon, Air Wick, Woolite and French’s. Powerbrands represent 80% of RB’s net revenue.

RB is redefining the world of consumer health and hygiene. Its people and unique culture are at the heart of its success. It has a drive for achievement and a passion to outperform wherever it focuses, including sustainability where it is targeting a 1/3 reduction in water impact, a 1/3 less carbon footprint per dose of product, and 1/3 of net revenue from more sustainable products.

RB is proud to lead the Save a Child a Minute campaign, which aims to eliminate child deaths from diarrhoea, one of the world’s largest killers of children under 5.

For more information visit www.rb.com or here. A bit about RB.

About Mead Johnson

Mead Johnson, a global leader in infant and children’s nutrition, develops, manufactures, markets and distributes more than 70 products in over 50 markets worldwide. The company’s mission is to nourish the world’s children for the best start in life.

The Mead Johnson name has been associated with science-based infant and children’s nutrition products for over 100 years. The company’s Enfa family of brands, including Enfamil infant formula, is the world’s leading franchise in infant and children’s nutrition.

In the year ended 31 December 2016, Mead Johnson reported net sales of $3,743 million, of which 50% were generated in Asia, 17% in Latin America and 33% in North America / Europe. On a US GAAP basis, Mead Johnson reported earnings before interest and income taxes of $819 million, earnings before income taxes of $713 million and net earnings attributable to shareholders of $545 million. On a non-US GAAP basis, Mead Johnson reported earnings before interest and income taxes of $927 million and EBITDA of $1,026 million. As at 31 December 2016, Mead Johnson reported total assets of $4,088 million.

For more information, go to www.meadjohnson.com

For more information about the deal please go to https://www.healthier-lives.com/en/home/

Others :

http://blogs.barrons.com/emergingmarketsdaily/2017/03/31/mead-johnson-can-it-catch-up-in-china/
https://www.com-unik.info/2017/03/27/reckitt-benckiser-group-plc-rb-given-outperform-rating-at-credit-suisse-group-ag-updated-updated.html

A bit about Reckitt Benckiser and 2017-2018

A bit about Reckitt Benckiser and 2017-2018

Reckitt Benckiser Formative years

(parts taken from http://www.managementtoday.co.uk/need-know-about-rb/any-other-business/article/1424587)

RB, as we know it today, was created by the £5bn merger of the UK’s Reckitt & Colman with Dutch rival Benckiser in 1999, creating a brand powerhouse to rival the biggest beasts of consumer packaged goods.

Its roots lie in 19th-century laundry with Isaac Reckitt’s starch mill in Hull and Johann Benckiser’s household chemicals business in Pforzheim, Germany.
Johann A. Benckiser founded a business in Germany in 1823. Its main products were industrial and consumer goods industrial chemicals. Benckiser went public in 1997.

Reckitt & Sons started in 1840 when Isaac Reckitt rented a starch mill in Hull, England. He diversified into other household products and after his death in 1862, the business passed to his three sons. In 1886, Reckitt opened its first overseas business in Australia. The firm was first listed on the London Stock Exchange in 1888. Harpic Lavatory Cleaners was acquired in 1932, and that same year, Dettol was launched.

In 1938 Reckitt & Sons merged with J. & J. Colman, which had been founded in 1814 when Jeremiah Colman began milling flour and mustard in Norwich, England,to become Reckitt & Colman Ltd. The company made several acquisitions, including the Airwick and Carpet Fresh brands (1985), the Boyle-Midway division of American Home Products (1990), and the Lehn & Fink division of Sterling Drug (1994). It acquired several brands from DowBrands in 1998.

FTSE 100 RB’s brands today include Cillit Bang, Calgon and Durex.
RB’s brands include French’s Mustard, the antiseptic brand Dettol, the sore throat medicine Strepsils, the hair removal brand Veet, the immune support supplement Airborne, the air freshener Air Wick, Calgon, Clearasil for Acne, Cillit Bang, Durex, Lysol, Mycil and Vanish, and Scholl It has operations in around 60 countries and its products are sold in almost 200 countries.

RB Recent history

A focus on consumer healthcare – it produces Nurofen, Gaviscon and Strepsils among others – has helped RB make up in quality what it lacks in sheer global heft.

CEO Rakesh Kapoor, a veteran who joined the-then Reckitt & Colman in 1987 has worked his way up to the top.

Reckitt Benckiser Vitals

Revenues: £9.89bn
Net profit: £1.8bn
Employees: 37,000
Market capitalisation of approximately £44 billion as of December 2015

How Analysts See Reckitt Benckiser Group plc (LSE:RB) Perform In The Year Ahead?

Scott Perkins March 24, 2017
(From https://simplywall.st/news/2017/03/24/how-analysts-see-reckitt-benckiser-group-plc-lserb-perform-in-the-year-ahead/)

Exciting times ahead for RB.

Analysts are predicting good growth prospects for Reckitt Benckiser Group over the next three years. We are expecting to see the earnings grow around 55.5% and earnings per share estimates range from £3.69 to £5.05.

In the same period we are supposed to see the revenue grow from £9.89 Billion to £13.83 Billion in 2020 and profits (net income) are predicted to rise from £1,832 M to £3,193 M in 2020, roughly growing 1.7x. Margins are predicted to be extremely healthy during this time as well.

Is the growth built on solid basis?

Reckitt Benckiser Group has grown its earnings faster than the Household Products industry average over the past year.

The team behind Reckitt Benckiser Group appears to be doing a pretty good job over the last year with an Return on Equity of 23.9%, despite this being below the average for the Household Products industry of 30.41%. This is expected to further improve with the stock estimated to have an outstanding ROE of 24.8%.

Other references https://en.wikipedia.org/wiki/Reckitt_Benckiser and https://www.rb.com/