Reckitt Benckiser Group $17.9 billion acquisition of Mead Johnson Nutrition

Overview:

• Reckitt Benckiser Group has agreed to acquire Mead Johnson Nutrition for $17.9 billion.
• The deal sees Reckitt Benckiser pay $90 a share for the baby formula manufacturer valuing it at $16.6 billion. The total deal value includes Mead Johnson's debt.
• Financing for the deal has been provided by Bank of America Merrill Lynch, Deutsche Bank and HSBC.
• Bloomberg reports that the deal includes a $480 million 'breakup fee' to deter rival bidders.
• The deal is said to be driven by Reckitt Benckiser's need to increase its presence in Asia.
• Reckitt Benckiser is a UK healthcare and home products manufacturer with brands including Dettol, Strepsils, Veet, Durex, Vanish and Calgon.

Sam Duke - Editor