Bayer says to acquire U.S. vitamin maker Schiff

























FRANKFURT (Reuters) – Germany‘s Bayer plans to buy U.S. vitamins maker Schiff Nutrition International in an agreed $ 1.2 billion deal as it continues to focus on smaller acquisitions.


“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 Bayer Chief Executive Marijn Dekkers.





















Germany’s largest drugmaker said on Tuesday it is offering $ 34 per share in cash to Schiff shareholders, a 47 percent premium over the Friday closing price of $ 23.19, and expects to close the transaction by end-2012.


With revenue of $ 259 million for its Schiff’s fiscal year ended May 31, Bayer agreed to pay 4.6 times annual sales, an unusually high deal multiple in the non-prescription drugs industry.


Bayer CEO Dekkers took the post in 2010 with a reputation for being able to handle transformational takeovers, but the Schiff deal is the latest in a line of small and medium-sized acquisitions.


In September, Bayer agreed to buy Teva’s U.S. animal health operations for up to $ 145 million, as it looked to shore up its veterinary drugs business with smaller deals for lack of bigger opportunities.


Bayer is due to release third-quarter earnings later on Tuesday.


(Reporting by Ludwig Burger)


Medications/Drugs News Headlines – Yahoo! News



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