Why do you want to buy?
Li Jie CEO Laksh
Kapoor said that Mead Johnson's global distribution can significantly enhance Li Jie's distribution in developing markets. After the merger, China will become our second largest "supermarket". The company has a profound insight into consumers, and believes that the company's expertise in operating global brands will help Mead Johnson significantly improve its product structure. At the same time, it will continue to invest in Mead Johnson's strong scientific research, regulations, quality and special channel capabilities.
Mead Johnson Senior Vice President and President of Greater China especially responded to CBN's statement that China's dairy market has great potential. I believe this merger will play a synergistic role for both parties in many aspects, and make key markets including China grow faster through resource integration and regional complementarity. At the same time, it is believed that the addition of Mead Johnson will effectively supplement and improve the layout of Li Jie Group in China and even the Asia-Pacific market.
Analysis:
For Mead Johnson, whose performance has been declining in recent years, Li Jie's diversified products, global layout strategy and corporate strength are also conducive to Mead Johnson's next development. After the two companies cooperate, they can play a synergistic role in market development, channel construction and brand promotion. Especially after the merger, Mead Johnson's ability to cope with uncertainties and risks such as future emerging market changes and policy adjustments has been further enhanced; This acquisition is a cash acquisition, with an average premium of about 24%, which makes Mead Johnson shareholders get rich returns.
According to public information, Lijieshi Group was born in 1823 and headquartered in the UK. It is an international giant that produces fast-moving consumer goods such as health, hygiene and home care. It ranks among the top 25 listed companies on the London Stock Exchange and one of the top 500 Forbes companies, with a market value of $62.4 billion for 20 15.
Starting from 20 13, Li Jie intends to turn to the big health field, and successively acquired the domestic pharmaceutical company Guilong Pharmaceutical and launched the dietary supplement brand.
Mead Johnson has a hard time, too. In 20 12, Mead Johnson ranked first in the infant formula industry in China, but now it has fallen to the third place in the industry. According to its financial report, Mead Johnson's 20 16 revenue was $3.743 billion, down 8% year-on-year. Mead Johnson's three major markets in Asia, North America/Europe and Latin America have all declined to varying degrees. Among them, the Asian market, which contributed half of the revenue, fell by 9% year-on-year. After deducting the influence of China's exchange rate, there is a 5% decline. Mead Johnson pointed out that the poor performance of China market was affected by the decrease in the number of Hong Kong tourists and the transformation of e-commerce channels.
Therefore, Mead Johnson also needs to transform from a baby milk powder enterprise to a broader field of food and health care. After all, there is still a lot of room for the whole Asia-Pacific food and health products company in the future.