As per the terms of the agreement, Danone is expected to pay an amount of approximately $62m in cash to MNI’s shareholders for the acquisition of 100% of the capital.
With this acquisition MNI’s organisation and product portfolio is expected to become part of Danone’s North American Medical Nutrition business, Nutricia North America which is headquartered in Rockville.
MNI introduced liquid protein supplements for elderly people in the US long term care market in 2003. MNI’s products consists of protein supplementation and wound care support.
Flemming Morgan, president of medical nutrition for Danone, said: “I am delighted that the MNI team will be joining our Medical Nutrition Division, including Nutricia North America.
“Because MNI’s product lines are so complementary to ours, the combination of the two businesses is expected to reinforce Danone’s position in Advanced Medical Nutrition.”
Frank Newman, chairman and CEO of MNI, said: “The merger is a wonderful opportunity for MNI customers, employees and shareholders alike.
“The combination of Danone’s research in paediatric medical nutrition with MNI’s product line in nutrition medicine for the elderly in the US is expected to benefit our customers and employees.”