In late October Bayer AG was poised to purchase Schiff for $1.2 billion before Reckitt submitted its surprise bid. In a filing with the U.S. Securities and Exchange Commission (SEC), Bayer said a competitive bidding process “would result in a price outside Bayer’s set financial criteria.”
Rakesh Kapoor, CEO of U.K.-based Reckitt Benckiser, said the company is pleased to enter the $30 billion vitamins, minerals and supplements market with a strong portfolio of brands. “Schiff’s portfolio is an excellent fit with our strategic focus on health and hygiene, where in healthcare in the USA we already have Mucinex, Delsym, Cepacol and Durex as major brands. The subcategories within which Schiff operates have strong growth momentum and to this we expect to combine Reckitt Benckiser’s strong go-to-market capabilities, as well as proven skills in branding, innovation and consumer communication and education.”
Reckitt Benckiser expects the tender offer to close before the end of 2012. Mr. Kapoor concluded, “We are confident that our considerable expertise in building great consumer brands will drive sustainable growth and shareholder returns from this transaction.”
The financial information disclosure dated October 29, 2012 and made public in Schiff’s 14C SEC filing on November 5, 2012, indicated projected net sales of approximately $385 million and forecast proforma EBITDA of approximately $84.6 million for the fiscal year ending May 31, 2013.