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news.Reckitt Benckiser has signed a definitive merger agreement to acquire Schiff Nutrition International, provider of vitamins, nutrition supplements and nutrition bars in the US and other countries.
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Schiff board of directors have approved the transaction and asked their stockholders to tender their shares into Reckitt Benckiser’s previously announced cash tender offer of $42.00 per share, valuing Schiff at $1.4bn.
Reckitt Benckiser will be financing the transaction with cash and existing credit facilities.
Reckitt Benckiser chief executive officer Rakesh Kapoor said Schiff’s portfolio is fit with Reckitt’s strategic focus on health and hygiene.
"The sub-categories within which Schiff operates have strong growth momentum and to this we expect to combine Reckitt Benckiser’s strong go to market capabilities as well as proven skills in branding, innovation and consumer communication and education," Kapoor added.
"Reckitt Benckiser expects the tender offer to close before the end of calendar year 2012."
As part of the merger agreement, Reckitt Benckiser will also amend its tender offer documents to remove the conditions relating to due diligence and the execution of a definitive merger agreement.
Morgan Stanley & Co is acting as exclusive financial adviser to Reckitt Benckiser.