British consumer products giant Reckitt Beckinser has offered $1.4 billion for vitamin and supplements maker Schiff Nutrition – a premium on Bayer AG's proposed $1.2 billion deal accepted by a majority of shareholders last month.
Reckitt Beckinser’s cash offer values Schiff shares at $42 – a 23% premium on the company’s current share price. The proposed Reckitt Beckinser deal is 24% higher than Bayer’s $34 a share offer.
Reckitt Beckinser said that a successful bid for Schiff would enable the firm to establish a strong foothold in the $30 billion vitamins, minerals and supplements market.
"This market would be the largest consumer health care sector in which we operate," said Rakesh Kapoor, Reckitt Beckinser’s chief executive.
"It is an ideal addition to Reckitt Benckiser's new strategic focus in global health and hygiene, and would give us immediate scale in the USA."
Kapoor, confident that Schiff’s board would recognise Reckitt Beckinser’s offer as “the superior proposal”, added that the firm would be willing to replicate the merger agreement proposed by Bayer. Kapoor expects the deal to close by the end of the calendar year, subject to prompt due diligence.
Salt Lake City-based Schiff had a turnover of $385 million in the year ending 31 May.
