Strategic move to significantly strengthen Consumer Care business of Bayer: Bayer to acquire Schiff Nutrition International for US$ 1.2 billion Transaction includes MegaRed®, Move Free® and Airborne® brands

Dr. Marijn Dekkers has been chairman of Bayer AG’s Group Board of Management since October 1, 2010. (Image: Bayer AG)
Dr. Marijn Dekkers has been chairman of Bayer AG’s Group Board of Management since October 1, 2010. (Image: Bayer AG)

Leverkusen, Germany/Morristown, New Jersey/Salt Lake City, Utah, USA (October 30, 2012) – Bayer HealthCare LLC has signed a merger agreement to acquire Schiff Nutrition International, Inc. (NYSE: SHF), 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.”

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 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.

Forward-Looking Statements

This release may contain forward-looking statements based on current assumptions and forecasts made by Bayer Group or subgroup and Schiff management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the respective companies and the estimates given here. These factors include those discussed in Bayer’s and Schiff’s public reports which are available on the Bayer website at www.bayer.com and on the Schiff website at www.schiffnutrition.com. Bayer and Schiff assume no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

(Source: Bayer AG)

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