, Columnist
Rewriting the Script for Food Mergers
Reckitt Benckiser is the suitor no one saw coming for Mead Johnson. Watch twists with other deals, such as Kraft Heinz.
This article is for subscribers only.
A takeover of Mead Johnson Nutrition Co. was always a matter of when, not if. But its current suitor, Reckitt Benckiser Group Plc, hadn't been the obvious choice. Investors should take this as a reminder: If you think you can guess exactly how this year's big, highly anticipated food M&A will shake out, think again. We could see more surprises -- like Kraft Heinz's next target, perhaps? More on that lower down.
But first, the news: Reckitt Benckiser, known for Lysol disinfectant spray and Durex condoms, is in talks to buy Glenview, Illinois-based Mead Johnson, maker of Enfamil baby formula, for $16.7 billion in cash. Gadfly crunched the numbers here and explained how this marks somewhat of a strategic shift for the U.K. company.