Bayer AG to buy Schiff Nutrition for $1.1 bln
Bayer AG will be buying Schiff Nutrition International Inc for $1.1 billion to add faster-growing vitamins and nutrition supplements business to the German drug company’s consumer health-unit.
Leverkusen-based Bayer said, the investors will get $34 a share in cash. The price is 47% above Schiff’s closing level of Oct 26, the most recent day of stock trading in the U.S.
Bayer also said its third quarter profit also surged 2.2%. Bayer will also strengthen its U.S. consumer health unit with Salt Lake City, Utah-based business.
Chief Executive Officer Marijn Dekkers also said, signed above six weeks after Bayer agreed to acquire Teva Pharmaceuticals Industries Ltd’s animal-health business, the deal fits with Bayer’s strategy to build its life sciences unit will small and mid-sized buyouts. Schiff sales in the year ended May 31 totaled $259 million.
The company also said, last month that sales this fiscal year would increase by 43% to 46% after its acquisition of Airborne. Schiff also makes Tiger’s Milk nutrition bars, Omega-3 product MegaRed and MoveFree, a pill for joints.
The U.S. Company will not be seeking a competing offer, though it has the option to review unsolicited bids until Nov 28. Chairman Eric Weider’s company Weider Health and Fitness that owns a controlling stake in Schiff, agreed to the deal. The deal is expected toclose by the end of 2012.
Bayer was advised by Bank of America Merrill Lynch and Rotschild advised Schiff. The buy includes net debt values Schiff about 17.8 times this year’s estimated earnings before interest, tax, depreciation and amortization.
The purchase price is based on about 31.1 million shares outstanding, including shares underlying stock options. The company is also assuming $122 million in net debt. It has also appointed Liam Condon as the Chairman of the Executive Committee of the crop-science unit. He replaced Sandra Peterson who is leaving Bayer on November 30 to join Johnson & Johnson.
Bayer AG is a global enterprise having expertise in the field of health care, agriculture and high-tech materials. Its products and services are designed to benefit people and improve the quality of life.