Reckitt Benckiser inks deal to acquire Schiff Nutrition for $1.4 bln
Reckitt Benckiser Group Plc has agreed to buy Schiff Nutrition International Inc in a transaction worth the dietary supplements maker for about $1.4 billion.
Its board has approved the offer of $42 a share in cash and will recommend its investors tender their shares, England-based Company said.
When the offer was announced on November 15, it valued Schiff at about 28 times earnings before interest, taxes, depreciation and amortization and represented 81% premium to Schiff’s share price on October 26, before Bayer’s offer.
Reckitt Benckiser’s counterbid for Salt Lake City-based Schiff, the maker of Move Free joint-care pills, Tiger’s Milk nutrition bars and MegaRed Omega-3 supplements, exceeded Bayer’s offer of about $1.1 billion.
The purchase of Schiff will follow a string of acquisitions since 2006, including Adams Respiratory Therapeutics Inc and SLL International Plc, the maker of Scholl foot products.
The company Reckitt Benckiser will finance its purchase with cash and current credit facilities and also expects the tender offer to close before the end of the year.
Bayer, headquartered in Leverkusen, Germany had agreed to acquire Schiff for $34 a share.
Reckitt Benckiser started an unsolicited tender offer for Schiff on Nov 16 and on Nov 20, Bayer said it will not raise its bid for Schiff as the price would have been too high.
Reckitt Benckiser’s offer valued Schiff about 28 times Ebidta. Morgan Stanley is providing financial assistance to Reckitt Benckiser. Schiff was advised by bankers including Bank of America Merril Lynch, Rothschild and Houlihan Lokey .
Reckitt Benckiser Plc is a British multinational consumer goods company based in Slough, UK. It is the largest producer of household cleaning products and is also a major producer of consumer healthcare and personal products.
Schiff Nutrition International Inc is a leading nutritional supplement company offering over 400 SKUs in vitamins, nutritional supplements and nutrition bars in the U.S. and throughout the world.
Bachem turns 50 - a timeline
Bachem, a supplier to pharmaceutical and biotechnology companies worldwide, is celebrating its 50th anniversary this month. We take a look at the Swiss company's history.
1971 - beginnings
Bachem is founded by entrepreneur Peter Grogg in Liestal, a small town near Basel in Switzerland. Grogg started the firm with just two employees, and with a focus on peptide synthesis - peptides are composed of amino acids that have a variety of functions treating health conditions such as cancer and diabetes.
1977 - 1981 - early growth
Bachem moves its headquarters to the Swiss town of Bubendorf, with eight employees. In 1978 the company produces peptides for use in medicines for the first time. In 1981 production capacity triples and the workforce grows to 150.
1987 - 1996 - worldwide expansion
The company expands into the US with Bachem Bioscience, Inc. in Philadelphia. To strengthen its presence in Europe, Bachem opens sales and marketing centres in Germany in 1988.
Further sales centres open in France in 1993. By 1995 the company employs 190 people. In 1996 it acquires the second largest manufacturer of peptides in the world and forms Bachem California with a site in Torrance.
1998 - 2003 - Bachem goes public
Bachem company goes public and lists shares on the Swiss Stock Exchange. Further acquisitions include Peninsula Laboratories, Inc, based in California, and Sochinaz SA, a Swiss-based manufacturer of active pharmaceutical ingredients. By 2001, the company has 500 employees and sales reach 141 million CHF.
In 2003 the organisation is given a new legal holding structure to support its continued growth, which remains in place to this day.
2007 - 2013 - acquisitions
Bachem acquires a brand by Merck Biosciences for ready-to-use clinical trial materials and related services.
In 2013, together with GlyTech, Inc. Bachem announces the development of a new amino acid that can help to treat multiple sclerosis, with a world market of more than $4 billion.
In 2015 it acquires the American Peptide Company (APC), which becomes integrated into Bachem Americas.
2016 - 2019 - a global leader
In 2016 the group opens a new building dedicated to R&D projects and small series production in Bubendorf. With a total of 1,022 employees, the workforce exceeds the 1,000 mark for the first time in the company’s history. Sales are over the 200 million mark for the first time at 236.5 million CHF.
Bachem expands into Asia with the establishment of a new company in Tokyo called Bachem Japan K.K.
By 2019 Bachem has a growing oligonucleotide portfolio - these are DNA molecules used in genetic testing, research, and forensics. It is hoped this will become a significant product range in the future.
2020 - COVID-19
Despite the COVID-19 pandemic, Bachem secures its supply of active ingredients, and even increases it in critical areas. Sales exceed the 400 million Swiss franc mark for the first time, and 272 new employees are hired.
2021 - a milestone anniversary
Bachem celebrates its 50th anniversary and position as a global leader in the manufacture of peptides. While it remains headquartered in Bubendorf, the company employs 1,500 people at six locations worldwide. In the next five years there are plans to continue expanding.
Commemorating the company's anniversary, Kuno Sommer, Chairman of the Board of Directors, said: "Bachem's exceptional success story from a small laboratory to a global market leader is closely linked to Peter Grogg's values, and has been shaped by innovation, consistent quality and cost awareness, as well as by entrepreneurial vision."