"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. Jorg 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."
Tarang P. Amin, president and CEO of Schiff, said, "Schiff has a 75 year heritage of providing consumers with quality nutritional products. We are focused on building premium brands and leading innovation. We believe Bayer is well positioned to take our leading brands to the next level."
Schiff generated net sales of $259 million (about €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 43-46%. 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, UT, as well as offices in Emeryville, CA. 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 healthcare, agriculture and high-tech materials. As an inventor company, it sets trends in research-intensive areas. Bayer's products and services are designed to benefit people and improve the quality of life, according to the company. At the same time, the group aims to create value through innovation, growth and high earning power. Bayer is committed to the principles of sustainable development. In fiscal 2011, the group employed about 112,000 people and had sales of €36.5 billion. Capital expenditures amounted to €1.7 billion, R&D expenses to €2.9 billion.