Consumer goods company Reckitt Benckiser Group Plc (RB.L, RBGPF.PK) announced it has signed a definitive merger agreement with vitamin maker Schiff Nutrition International Inc. (SHF).
Reckitt Benckiser said that Schiff board has approved the transaction and will recommend that its stockholders tender their shares into Reckitt Benckiser's previously announced cash tender offer of $42.00 per share, valuing Schiff at $1.4 billion.
Reckitt Benckiser's tender offer will expire on December 14, 2012, unless extended. Reckitt Benckiser noted that it will finance the transaction with cash and existing credit facilities. The transaction is expected to be immediately accretive to earnings on an adjusted basis.
Reckitt Benckiser expects the tender offer to close before the end of calendar year 2012.
The tender offer will remain subject to customary conditions, including the tender of a majority in voting power of Schiff shares of common stock and the expiration or early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act (HSR Act).
On 15th November, Reckitt Benckiser Group said it would commence a tender offer on Friday to acquire all of the outstanding shares of vitamin maker Schiff Nutrition International for $42.00 per share in an all-cash deal valued at about $1.4 billion. The offer tops the agreed deal in late October for German pharmaceutical firm Bayer AG's (BYR.L, BAYRY.PK, BAYZF.PK) unit Bayer HealthCare LLC to acquire Schiff for $34.00 per share in a deal valued at about $1.2 billion.
Reckitt Benckiser's offer of $42.00 per share represents a premium of 23.5 percent over Bayer's offer and represents a significant 81 percent premium over Schiff's unaffected closing share price of $23.19 on October 26.
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