Reckitt Benckiser, Maker of Durex, to Acquire Mead Johnson for $16.6 Billion -<br />LONDON — The British consumer goods company Reckitt Benckiser, which makes Durex condoms and Air Wick fresheners, said on Friday<br />that it had agreed to buy Mead Johnson Nutrition, the maker of Enfamil baby formula, in a $16.6 billion deal that would significantly expand its sales in developing countries.<br />“This is a natural extension to R. B.’s consumer health portfolio of power brands, which are already trusted<br />by millions of mothers, reinforcing the importance of health and hygiene for their families.”<br />Under the terms of the deal, Reckitt Benckiser would pay $90 a share for Mead Johnson, a 24 percent premium<br />to its closing price on Feb. 1, the day before reports emerged that the companies were in discussions.<br />The combined company would have about 40 percent of its sales in developing markets,<br />and China would be its second-largest market after the United States, Reckitt Benckiser said.<br />“The acquisition of Mead Johnson is a significant step forward in R. B.’s journey as a leader in consumer<br />health,” Rakesh Kapoor, the chief executive of Reckitt Benckiser, said in a news release.
