A British consumer goods company has made a competing bid for Schiff Nutrition International Inc. a couple of weeks after Bayer AG said it would buy the U.S. vitamin and nutritional supplement maker.
Slough, England-based Reckitt Benckiser said it is starting a tender offer to buy Schiff for $1.4 billion, or $42 per share, in cash. That per-share price represents a premium of more than 23% over an offer Bayer made Oct. 30.
The German drugmaker said then that it would buy Schiff for $1.2 billion, or $34 per share, in another cash deal. A Bayer spokesman declined to comment Friday on the competing offer.
Schiff products include Tiger's Milk nutrition bars, Omega 3 supplement MegaRed, and Airborne immune system health supplements. Its portfolio includes brands in three of the largest health supplement segments - joint care, cardiovascular health and immune support.
For its fiscal 2012, which ended May 31, Schiff posted revenue of $258.9 million, and net income of $13.7 million, or 47 cents per share. That was up from sales of $213.6 million, and earnings of $12.6 million, or 43 cents per share, for its prior fiscal year.
Reckitt Benckiser said it was confident Schiff's board of directors will choose its "superior proposal," and it believes it can get a deal done before the end of the year.
Date: November 16, 2012
Source: Associated Press