Strategic move to significantly strengthen Consumer Care business
Bayer is committed to augment its organic growth with strategic bolt-on acquisitions. This transaction represents an excellent strategic fit for its HealthCare business. The Schiff business significantly enhances Bayer's presence and position in the US, which accounts for more over-the-counter and nutritional products sales than any other country in the world.
'We will utilise our extensive marketing, sales and distribution expertise to further develop the strong brands we are acquiring,' said Dr Jorg Reinhardt, CEO of Bayer HealthCare. 'We will also look to leverage Schiff's new technology platforms with innovation potential for other Bayer-owned brands and markets globally.'
We will also look to leverage Schiff's new technology platforms with innovation potential for other Bayer-owned brands and markets globally
Tarang Amin, president and CEO of Schiff, said: 'Schiff has a 75 year heritage of providing consumers with quality nutritional products. We are focused on building premium brands and leading innovation. We believe Bayer is well positioned to take our leading brands to the next level.'
Schiff generated net sales of US$259m (approx. €200m) for its fiscal year ended 31 May, 2012. On 18 September, Schiff publicly announced that net sales for fiscal year 2013 were projected to grow between 43 and 46%. Expected sales growth includes contributions from new products and brand building as well as Airborne, which was acquired by Schiff on 30 March.
We are focused on building premium brands and leading innovation. We believe Bayer is well positioned to take our leading brands to the next level
The company employs approximately 400 people with its headquarters and manufacturing site based in Salt Lake City, Utah, as well as offices in Emeryville, California. The Schiff portfolio includes strong brands in three of the largest health supplement segments including Joint Care (Move Free), Cardiovascular Health (MegaRed) and Immune Support (Airborne), among others. These products complement Bayer's existing OTC portfolio and will allow it to provide consumers with a broad range of options in these key segments.
In fiscal 2011, Bayer employed about 112,000 people and had sales of €36.5bn. Capital expenditures amounted to €1.7n, R&D expenses to €2.9bn.