30 October 2012

Bayer to acquire Schiff Nutrition International for US$ 1.2 billion

- Strategic move to significantly strengthen Consumer Care business of Bayer 


Leverkusen, Germany/Morristown, New Jersey/Salt Lake City, Utah, USA – 30 October 2012 – Bayer HealthCare LLC has signed a merger agreement to acquire Schiff Nutrition International, Inc., a leading company offering vitamins and nutritional supplements in the United States and other countries. Schiff’s product portfolio includes core brands MegaRed®, Move Free® and Airborne®, among others. The transaction values Schiff at approx. US$1.2 billion (approx. EUR 920 million) representing US$34 per share in cash. Closing is subject to customary closing conditions and is expected by year end 2012. 

“Bayer is committed to augment its organic growth with strategic bolt-on acquisitions. This transaction represents an excellent strategic fit for our HealthCare business,” said Dr. Marijn Dekkers, CEO of Bayer AG. “The Schiff business significantly enhances our presence and position in the United States, which accounts for more over-the-counter and nutritional products sales than any other country in the world.” 

“We will utilize our extensive marketing, sales and distribution expertise to further develop the strong brands we are acquiring,” said Dr. Jörg Reinhardt, CEO of Bayer HealthCare. “We will also look to leverage Schiff’s new technology platforms with innovation potential for other Bayer-owned brands and markets globally.” 

Schiff generated net sales of US$259 million (approx. EUR 200 million) for its fiscal year ended May 31, 2012. On September 18, 2012, Schiff publicly announced that net sales for fiscal year 2013 were projected to grow between 43 and 46 percent. Expected sales growth includes contributions from new products and brand building as well as Airborne®, which was acquired by Schiff on March 30, 2012. 

The company employs approximately 400 people with its headquarters and manufacturing site based in Salt Lake City, Utah, as well as offices in Emeryville, California. The Schiff portfolio includes strong brands in three of the largest health supplement segments including Joint Care (Move Free®), Cardiovascular Health (MegaRed®) and Immune Support (Airborne®), among others. These products complement Bayer’s existing OTC portfolio and will allow it to provide consumers with a broad range of options in these key segments.

Bayer is a global enterprise with core competencies in the fields of health care, agriculture and high-tech materials. In fiscal 2011, the Group employed about 112,000 people and had sales of EUR 36.5 billion. Capital expenditures amounted to EUR 1.7 billion, R&D expenses to €2.9 billion. 

Bayer HealthCare, a subgroup of Bayer AG with annual sales of EUR 17.2 billion (2011), is one of the world’s leading, innovative companies in the healthcare and medical products industry and is based in Leverkusen, Germany. Bayer HealthCare combines the global activities of the Animal Health, Consumer Care, Medical Care and Pharmaceuticals divisions. 

Bayer HealthCare’s Consumer Care Division is headquartered in Morristown, New Jersey, USA. It is among the largest marketers of over-the-counter medications and nutritional supplements in the world. 

Source: Bayer