Reckitt Benckiser (LSE: RB.L - news) has agreed to buy Schiff Nutrition in a $1.4bn (877m) deal that will unlock the British company's access to a $30bn vitamins and nutrition supplements market. <\/p>\n
The consumer goods company, which makes household products including Cillit Bang (BSE: BANG.BO - news) , Nurofen, and Dettol, trumped an earlier bid by German rival Bayer AG. <\/p>\n
Reckitt said the deal , which will springboard the company into the higher margin health business, would enable it to work with the American company to build on its US healthcare business, where it already sells brands such as Durex. <\/p>\n
\"Schiff's portfolio is an excellent fit with our strategic focus on health and hygiene,\" said Rakesh Kapoor, Reckitt Benckiser's chief executive. <\/p>\n
\"We are excited to enter the $30 billion global vitamins, minerals and supplements market with such a strong portfolio of high quality branded business in the USA.\" <\/p>\n
Reckitt first made the $42 per share cash tender offer this month , representing a 23.5pc premium over the $34 per share that Bayer, Germany's biggest drugmaker, agreed to pay in late October. <\/p>\n
The German drugmaker later said that it did not want to engage in a bidding war for the company. <\/p>\n
Reckitt said the deal will be financed with cash and existing credit facilities. It added that it expected to complete the deal by the end of the year. <\/p>\n
Reckitt recently said that growth in western markets had stalled amid falling sales of laundry detergents and fabric softeners in southern Europe (Chicago Options: ^REURUSD - news) , while growing middle classes in countries such as China had fuelled demand for more hygiene and health products. <\/p>\n<\/p>\n
Link: Reckitt Benckiser (LSE: RB.L - news) has agreed to buy Schiff Nutrition in a $1.4bn (877m) deal that will unlock the British company's access to a $30bn vitamins and nutrition supplements market. Continue reading
\nReckitt Benckiser buys Schiff Nutrition in $1.4bn deal<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"