Reckitt Benckiser acquired the American producer of baby food Mead Johnson for $16.6 billion dollars, in a transaction which would lead the British Group in a new direction and it would increase the business in the emerging markets, informs Reuters. Reckitt Benckiser, which produces things like the Nurofen tablets, the deodorant Air Wick and the condoms Durex, announced that it will pay 90 dollars in cash for each Mead Johnson action, a premium of 30% compared to the price recorded by the Mead Johnson actions, one day before Reckitt to inform that it is in advanced negotiations with Mead Johnson. The British producer of health products also says it expects to finance this transaction from its own funds and debts.

Including the debts of Mead Johnson, the total value of the transaction is about 17.9 billion dollars. Mead Johnson, who produces a wide range of milk powder marketed under the Reckitt Benckiser acquired the American producer of baby food Mead Johnson for $16.6 billion dollars, in a transaction which would lead the British Group in a new direction and it would increase the business in the emerging markets, informs Reuters. Reckitt Benckiser, which produces things like the Nurofen tablets, the deodorant Air Wick and the condoms Durex, announced that it will pay 90 dollars in cash for each Mead Johnson action, a premium of 30% compared to the price recorded by the Mead Johnson actions, one day before Reckitt to inform that it is in advanced negotiations with Mead Johnson. The British producer of products also says it expects to finance this transaction from its own funds and debts. Including the debts of Mead Johnson, the total value of the transaction is about 17.9 billion dollars. Mead Johnson, who produces a wide range of milk powder marketed under the Enfamil brand and nutritional supplements for children, sold under the name Sustagen.

It was considered for a long time, to be a target for the giants in the field of food Nestle and Dannon, while Reckitt Benckiser was not considered an obvious buyer, taking into account that it is not present on the market of food for children and its operations in the field of food are very low. However, the analysts believe that the accent placed by Reckitt Benckiser on the products of health care and the presence of Mead Johnson on the markets of Asia and Latin America, regions with a rapid increase of the population, makes this a good take-over target. Mead Johnson recorded in 2016 a turnover of 3.7 billion dollars and a net profit of 545 million dollars and almost half of its sales are made in Asia. When the transaction is complete, China will become the second biggest market of Reckitt, after the USA.

Enfamil brand and nutritional supplements for children, sold under the name Sustagen, was considered for a long time, to be a target for the giants in the field of food Nestle and Danone, while Reckitt Benckiser was not considered an obvious buyer, taking into account that it is not present on the market of food for children and its operations in the field of food are very low. However, the analysts believe that the accent placed by Reckitt Benckiser on the products of health care and the presence of Mead Johnson on the markets of Asia and Latin America, regions with a rapid increase of the population, makes this a good take-over target. Mead Johnson recorded in 2016 a turnover of 3.7 billion dollars and a net profit of 545 million dollars and almost half of its sales are made in Asia.

When the transaction is complete, China will become the second biggest market of Reckitt, after the USA.