01.04.15
Raisio Group has acquired the Benecol business in the U.K., Ireland and Belgium from Cilag GmbH International and amended its agreement concerning North American rights to Benecol with McNEIL-PPC, Inc. Both Cilag GmbH International and McNEIL-PPC, Inc. are part of the Johnson & Johnson family of companies. In the U.K. and Ireland, Benecol is a market leader in cholesterol-lowering functional foods. The acquisition is estimated to increase Raisio’s EBIT by about €9 million annually.
“The acquisition of the Benecol business in the U.K., Ireland and Belgium as well as the amended agreement in the U.S. strongly support Raisio’s growth strategy with its branded business. In terms of Benecol products, Raisio’s long-term strategic goal is to enhance competitiveness in the existing markets, to expand into new markets as well as to innovate new products. Through this arrangement, we will have the opportunity to develop Benecol business on our own terms, following our strategic objectives,” said Raisio CEO Matti Rihko.
Cilag GmbH International has had the exclusive rights to sell and market Benecol products in the U.K., Ireland and Belgium. With the acquisition, rights to the Benecol trademark and plant stanol ester patents held by Cilag GmbH International will return to Raisio. The U.S. business is included in the deal, but McNEIL-PPC, Inc. will continue as Raisio’s licensee for the time being. The amended agreement allows for the return of the Benecol rights and transfer of certain U.S. assets to Raisio or its possible new licensee at a later date. For the first time since 1997, Raisio will have all the rights to the Benecol brand and plant stanol ester, the Benecol product ingredient. This allows Raisio to develop the business globally on a new basis.
The purchase price for the business and stocks totaled €88.4 million. The completion of the deal does not require an approval from the competition authorities. In 2013, net sales of Benecol in the acquired European countries and U.S. were approximately €76 million, of which the U.K. and Ireland accounted for about 85%.
“The acquisition of the Benecol business in the U.K., Ireland and Belgium as well as the amended agreement in the U.S. strongly support Raisio’s growth strategy with its branded business. In terms of Benecol products, Raisio’s long-term strategic goal is to enhance competitiveness in the existing markets, to expand into new markets as well as to innovate new products. Through this arrangement, we will have the opportunity to develop Benecol business on our own terms, following our strategic objectives,” said Raisio CEO Matti Rihko.
Cilag GmbH International has had the exclusive rights to sell and market Benecol products in the U.K., Ireland and Belgium. With the acquisition, rights to the Benecol trademark and plant stanol ester patents held by Cilag GmbH International will return to Raisio. The U.S. business is included in the deal, but McNEIL-PPC, Inc. will continue as Raisio’s licensee for the time being. The amended agreement allows for the return of the Benecol rights and transfer of certain U.S. assets to Raisio or its possible new licensee at a later date. For the first time since 1997, Raisio will have all the rights to the Benecol brand and plant stanol ester, the Benecol product ingredient. This allows Raisio to develop the business globally on a new basis.
The purchase price for the business and stocks totaled €88.4 million. The completion of the deal does not require an approval from the competition authorities. In 2013, net sales of Benecol in the acquired European countries and U.S. were approximately €76 million, of which the U.K. and Ireland accounted for about 85%.