On September 10, Mead Johnson China announced
that it has officially become a Chinese owned and independently operated
business group with local Chinese management. The company appointed Dingping
Zhu as president of Mead Johnson China business group. This is the first time
that a Chinese investment institution has acquired a century-old international
brand in the global infant nutrition industry.
On June 5, Reckitt Benckiser, the parent
company of Mead Johnson announced the signing of a transaction agreement with
Primavera Capital to sell Mead Johnson's infant formula and nutrition business
in the Greater China area (including China, Hong Kong, and Taiwan) for an
enterprise value of USD 2.2 billion to Primavera Capital. After the transaction
is completed, ReckittBenckiser will retain an 8% stake in the business and is
expected to receive USD 1.3 billion in cash income.
Mead Johnson acquisition includes acquisition of several subsidiary
companies
According to the public announcement form for
business mergers released by the State Administration for Market Regulation in
China, the transaction involves the acquisition of all equity included in five
companies, namely Mead Johnson International Holdings Pte., Ltd., Mead Johnson
Infant Nutrition Technology (Guangzhou) Co., Ltd. , Mead Johnson Infant
Nutrition Research Center (China) Co., Ltd. , Mead Johnson Hong Kong Ltd., as
well as Mead Johnson Netherlands LLC, and indirect acquisition of the entire
equity of Mead Johnson Nutrition Co., Ltd., through a special purpose company
in which Primavera Capital Phase IV Fund Limited Partnership indirectly holds
92% of the equity. After the completion of the transaction, Primavera Capital
Phase IV Fund Limited Partnership will independently control the target
company.
Before the completion of the transaction,
Reckitt Benckiser announced in February 2021 that it would conduct a
comprehensive strategic evaluation of its infant nutrition business in the
Greater China area. The transaction will sell the entire infant nutrition business
in Greater China, including production facilities in Nijmegen, the Netherlands,
and Guangzhou, China. The transaction also includes the unlicensed use of the
Mead Johnson Enfinitas, Enfamil, and Enfagrou brands in Greater China. After
the transaction, Reckitt Benckiser will continue to maintain the Mead Johnson
Enfinitas, Enfamil, and Enfagrou brands around the world and continue to
operate these brands in other countries or regions outside of Greater China.
Mead Johnson China plans to focus on increasing strength in Chinese
market
On September 9, the transaction was completed.
On September 10, Mead Johnson China announced that Dingping Zhu was appointed
to be the president of Mead Johnson China business group. Dingping Zhu
previously served as the China Executive President of Jianhe Group and was
responsible for sales, development strategy and overall operation management
for 14 years. He has extensive experience in strategic layout and business
transformation.
Regarding the future development of Mead Johnson
China, Dingping Zhu put forward the goal of being “committed to becoming the
preferred international brand of infant formula milk powder for Chinese
consumers." Furthermore, Zhu intends to use upgraded business strategies
to optimize the product portfolio based on local demand and enhance the focus
on Chinese consumers. Reckitt Benckiser also recently announced that Enda Rya
will continue to serve as the senior vice president of Reckitt Benckiser’s
Greater China region.
For more information, please check our Dairy
Products China News.
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