06.14.10
France-based Danone has signed an agreement to acquire Medical Nutrition USA, Inc. (MNI) for $62 million.
MNI introduced the concept of liquid protein supplements for elderly people in the U.S. long-term care market in 2003. Today, the company's flagship range of products now addresses protein supplementation and wound care support. Since 2003, this strategic focus and continuous innovation has resulted in a tenfold increase in revenues for MNI, to $16 million in the fiscal year ended January 31, 2010.
MNI's organization and portfolio of products will become part of Danone's Medical Nutrition division. Danone's North American Medical Nutrition business, Nutricia North America, is headquartered in Rockville, MD and its sales amounted to $70 million in 2009.
The benefit of this transaction relies in the strong complementarities both in terms of product ranges and channels of distribution. MNI has developed a solid access to the very promising long-term care channel while Nutricia’s products in the U.S. are mainly aimed at infants and distributed in pharmacies.
Flemming Morgan, president of Medical Nutrition for Danone said, "I am delighted that the MNI team will be joining our Medical Nutrition Division, including Nutricia North America. Because MNI's competencies and successful product lines are so complementary to ours, the combination of the two businesses will reinforce Danone's leadership in Advanced Medical Nutrition, and allow us to expand our reach and benefit the quality of life of more patients, particularly in the U.S."
“The merger is a wonderful opportunity for MNI customers, employees and shareholders alike,” Frank Newman, MNI chairman and CEO said. “The combination of Danone’s global reach and research in pediatric medical nutrition with MNI’s product leadership in nutrition medicine for the elderly in the U.S. represents a formidable coupling of complementary strengths that will benefit our customers and employees.”
“The merger is a wonderful opportunity for MNI customers, employees and shareholders alike,” Frank Newman, MNI chairman and CEO said. “The combination of Danone’s global reach and research in pediatric medical nutrition with MNI’s product leadership in nutrition medicine for the elderly in the U.S. represents a formidable coupling of complementary strengths that will benefit our customers and employees.”