Consumer-products maker Reckitt Benckiser Group signed a $1.4 billion deal to acquire Schiff Nutrition International Inc. on Wednesday, outbidding drug and chemical firm Bayer .
Schiff's stock soared from $8 a share two years ago to $23 before Bayer's bid was disclosed and closed at $41.90
Schiff, which sells vitamins and nutritional supplements such as Airborne, and Bayer had signed a merger agreement valuing the company at $1.2 billion, or $34 a share, in late October. The German drug maker said it hoped to buttress its U.S. consumer-health presence.
But, Reckitt, the Slough, England-based maker of Clearasil acne cream and Durex condoms, swooped in with the higher offer last week. Reckitt chief executive Rakesh Kapoor said in a statement Wednesday the deal would help springboard the British company into the higher-margin health business, where its offerings already include over-the-counter medicines such as cough-and-cold remedy Mucinex.
Salt Lake City, Utah,-based Schiff couldn't be reached for comment late Wednesday. A spokesman for Reckitt said the company had no further comment. Bayer said in a regulatory disclosed Tuesday that its board had decided not to increase its bid, clearing the way for Reckitt's deal.
happy now swalchie ?
You can go back on Ig now. Not sure how you got off