Nestle Examining Offer for Mead Johnson, Claims Report

c062b4c0-7b16-4335-a45e-8976c428df32articleimage.jpg

19 Jan 2017 --- Nestlé is gearing up to bid for US infant formula and vitamin maker Mead Johnson, according to a report. There has been speculation that Mead Johnson, which makes Enfamil baby formula, could be a target for Nestlé for some time, as it would help it grow in Latin America and Asia.

The report of the possible bid, reported in US title StreetInsider.com, can’t be independently confirmed.

Nestlé and Mead Johnson did not respond to a request for comment from FoodIngredientsFirst.

The report claims that Credit Suisse is advising on the potential deal, which could be announced as early as March this year. It cites its source as an individual close to the deal.

Mead Johnson has an enterprise value of roughly $14.5 billion but it is unclear about the value of such a bid.

Mead Johnson, which was spun out of the pharmaceutical company Bristol-Myers Squibb in 2009, had previously been a target for Danone.

Mead Johnson, which makes over $4bn in annual sales, sells its products in North America, Europe, Latin America and Asia. 

The global retail market for infant formula is expected to reach over $80 billion by 2018. Nestlé, Mead Johnson and Danone are the three biggest players in the category.

Shares in Mead Johnson were up 5.3 percent to $75.25 while Nestlé shares were down 0.2 percent to 73.55 Swiss Francs ($72.5) this morning.

Last year, Nestlé appointed former chief of German healthcare Fresenius Ulf Mark Schneider as its new CEO in a surprise move.

The appointment led to speculation that Nestlé could pursue acquisitions in nutrition and medical foods and shift away from its traditional food and beverage business.

To contact our editorial team please email us at editorial@cnsmedia.com

Related Articles

Business News

Polyol ambitions: Sunar Misir invests in sorbitol and maltitol capacity

24 Sep 2018 --- Sunar Misir plans to reach an installed capacity of 100,000 tons for its sorbitol and maltitol facility in Adana (Turkey) by the end of 2019. Sunar Mısır has over 33 years of experience with corn-based ingredients and offers sustainably-sourced, Non-GMO starches and starch derivatives for the global market.

Food Ingredients News

Water lentils: Parabel’s tiny plants with huge potential, LENTEIN’s disruptive promise

24 Sep 2018 --- There is much debate in the food industry that centers on the challenge that a fast-growing global population, that is expected to hit 10 billion by 2050, presents. How will we feed everyone? How will climate change impact on agriculture? What crops and food commodities are the most sustainable? These are some of the big questions that the food industry is currently facing. And water lentils, an innovative protein source, is one of the newest and exciting plant proteins that could hold the answer, according to Parabel USA.

Food Ingredients News

Weekly Roundup: Nestlé sells Gerber Life Insurance, Givaudan completes Naturex acquisition

21 Sep 2018 --- In business news this week, Nestlé announced plans to sell Gerber Life Insurance Company, to Western & Southern Financial Group for US$1.55 billion in cash. Bösch Boden Spies launched a sustainability initiative and Givaudan completed the acquisition of Naturex, following the implementation of the squeeze-out procedure and the delisting of Naturex shares from the Euronext Paris stock exchange. Firmenich appointed Emmanuel Butstraen as president of its Flavors Business Unit and member of the company’s executive committee and Tyson Foods’ CEO Tom Hayes is stepping down.

Food Ingredients News

Protein potential: Stryve Biltong secures US$10m investment to accelerate brand growth

20 Sep 2018 --- Protein snack brand, Stryve Biltong has received a total investment of US$10 million from Meaningful Partners, an investment firm focused on purposeful and mission-oriented consumer-facing challenger brands, and Murano group, a privately-owned holding company, among others.

Food Ingredients News

Parabel and Stauber enter plant protein distribution deal

19 Sep 2018 --- Plant protein ingredients producer Parabel USA Inc has finalized a distribution agreement with Stauber USA, a subsidiary of Hawkins Inc., for the commercialization of the award-winning LENTEIN plant protein in the US market. Parabel USA Inc. grows water lentils – Lemnaceae – in open hydroponic systems and processes them into LENTEIN plant protein and other plant-based ingredients.

More Articles