Feb 10, 2017
Reckitt Benckiser buys baby formula firm Mead Johnson
Mead Johnson makes infant formula under the Enfa brand and had sales of $3.7bn in 2016. The deal is worth $17.9bn once Mead Johnson's debt is taken into account. Mead Johnson chairman James Cornelius said Reckitt's offer provided "Tremendous value" to shareholders. Reckitt Benckiser said it would fund the purchase with loans from its banks Bank of America Merrill Lynch, Deutsche Bank and HSBC, and through selling bonds. If Reckitt Benckiser shareholders reject the deal, the company will pay Mead Johnson $480m.