Reckitt Benckiser, Maker of Durex, to Acquire Mead Johnson for $16.6 Billion -
LONDON — The British consumer goods company Reckitt Benckiser, which makes Durex condoms and Air Wick fresheners, said on Friday
that it had agreed to buy Mead Johnson Nutrition, the maker of Enfamil baby formula, in a $16.6 billion deal that would significantly expand its sales in developing countries.
“This is a natural extension to R. B.’s consumer health portfolio of power brands, which are already trusted
by millions of mothers, reinforcing the importance of health and hygiene for their families.”
Under the terms of the deal, Reckitt Benckiser would pay $90 a share for Mead Johnson, a 24 percent premium
to its closing price on Feb. 1, the day before reports emerged that the companies were in discussions.
The combined company would have about 40 percent of its sales in developing markets,
and China would be its second-largest market after the United States, Reckitt Benckiser said.
“The acquisition of Mead Johnson is a significant step forward in R. B.’s journey as a leader in consumer
health,” Rakesh Kapoor, the chief executive of Reckitt Benckiser, said in a news release.