Reckitt Benckiser Group Plc-ADR will be paying $90 per share for Mead Johnson Nutrition CO. This represents a 29% premium to the closing price of MJN’s stock on Feb. 1, 2017, which was the last day of trading before speculation about the deal started.
“Mead Johnson’s geographic footprint significantly strengthens our position in developing markets, which account for approximately 40% of the combined group’s sales, with China becoming our second largest ‘Powermarket,” RBGLY CEO said Rakesh Kapoor. “We are confident that our deep understanding of consumer needs and our expertise in scaling global brands will deliver significant growth for the MJN portfolio.”
Mead Johnson Nutrition CO’s Board of Directors have given their unanimous approval to the deal. However, the deal will still need approval from MJN and Reckitt Benckiser Group Plc-ADR shareholders. It will also need approval from regulators.
Mead Johnson Nutrition CO and Reckitt Benckiser Group Plc-ADR are expecting the deal to close during the third quarter of 2017. MJN says that it will continue to pay quarterly dividends to shareholders until the deal is complete.
MJN stock was up 4% and RBGLY stock was down 2% as of Friday morning.