Mead Johnson Nutrition In Advanced Talks To Be Acquired For $90 A Share

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February 2, 2017 6:46am NYSE:MJN

NYSE:MJN | News, Ratings, and Charts

From Mead Johnson Nutrition Co (NYSE:MJN) shares exploded higher in early trading Thursday, after the company confirmed it was in advanced takeover talks with British consumer products maker Reckitt Benckiser Group Plc.

Mead Johnson is one of the world’s largest infant formula makers. Its products include the Enfamil line, and it maintains a huge presence both in the U.S. as well as in Latin America and Asia. Those foreign regions have much faster population growth than developed nations, making them very lucrative markets.

Reckitt, which is best known for making a range of popular British cleaning products, confirmed it was offering $90 in cash for MJN. That takeover number is a 29.5% premium over MJN’s Wednesday closing price of $69.50.

Mead Johnson commented via press release:

While it is the longstanding policy of Mead Johnson Nutrition (NYSE:MJN) not to comment on market speculation or rumors, in response to media reports and a subsequent statement released by Reckitt Benckiser plc (RB), the company confirms that it is in discussions with RB with respect to its proposal to acquire the outstanding shares of MJN for $90 per share in cash.

Mead Johnson notes that no agreement has been completed, and there are no assurances that any transaction will result from these discussions. The company does not intend to make any additional comments regarding this matter unless and until a formal agreement has been reached or discussions have been terminated.

Mead Johnson Nutrition shares rose $16.20 (+23.31%) to $85.70 in premarket trading Thursday. Prior to today’s news, MJN had declined -1.78% year-to-date, versus a 1.83% rise in the benchmark S&P 500 index during the same period.

MJN currently has a POWR Rating of C (Neutral), and is ranked #37 of 62 stocks in the Food Makers category.

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