22 November 2012 11:00 [Source: ICIS news]
LONDON (ICIS)--Reckitt Benckiser is to acquire US vitamin company Schiff Nutrition, the UK-based consumer goods company said late on Wednesday, following Bayer’s decision to withdraw from the bidding.
Schiff agreed at the end of last month to be acquired by Bayer, which had offered $1.2bn (€936,000) for the company, but the German chemicals major withdrew from a potential bidding war after Reckitt Benckiser submitted a higher offer.
Reckitt bid $42 per share for the company, valuing it at $1.4bn, to be financed with cash and existing credit facilities, the company said.
Bayer said on Wednesday that it regarded its $1.2bn offer price as fair, and that a competitive bidding process would be likely to result in a transaction price “outside Bayer's set financial criteria.”
"After a number of successful acquisitions we will continue our strategy to augment organic growth with strategic bolt-on acquisitions," said Bayer CEO Marijn Dekkers.
Schiff is to pay Bayer a $22m break-up fee following the termination of the merger agreement between the two companies.
($1 = €0.78)
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