Mead Johnson

Last updated
Mead Johnson & Company, LLC
Type Subsidiary (LLC)
IndustryPediatric nutrition
Founded1905;117 years ago (1905)
Founder Edward Mead Johnson
Headquarters River Point, Chicago, Illinois
Evansville, Indiana
(Global Operations Center)
Key people
Aditya Sehgal, EVP Infant and Child Nutrition
Number of employees
7,500 (2017)
Parent Reckitt
Website www.meadjohnson.com

Mead Johnson & Company, LLC is an American company that is a leading manufacturer of infant formula, both domestically and globally, with its flagship product Enfamil. It operates as an independent subsidiary of Reckitt.

Contents

The company dates back to a firm created by Edward Mead Johnson, one of the co-founders of Johnson & Johnson, who created his own business in 1895, which was renamed Mead Johnson & Company in 1905. The company was majority owned by Bristol-Myers Squibb after an acquisition in 1967, but was spun-off in 2009 as an independent firm. Almost products were used by infants and children under 7, But Enfaschool which covers students from childhood to youth under 15 years.

In the year end 31 December 2016, Mead Johnson reported net sales of $3,743 million. Fifty percent of those sales were generated in Asia, 17% in Latin America and 33% in North America/Europe. For the same time period, the company reported total assets of $4,088 million.

In February 2017, British consumer goods company Reckitt (then known as Reckitt Benckiser at the time) bid $16.7 billion for the company. [1] On June 15, 2017, MJN announced that its merger with RB has been completed. As a result, MJN's common stock is no longer traded on the New York Stock Exchange, effective the announcement date. [2]

History and products

Dextri-Maltose and Pablum, early Mead Johnson products Pablum etc - Indiana State Museum - DSC00438.JPG
Dextri-Maltose and Pablum, early Mead Johnson products

Edward Mead Johnson had founded Johnson & Johnson in 1886 together with his brothers. In 1895, Johnson developed a side business called The American Ferment Company to create a digestive aid. In 1897, E. Mead Johnson left the family business to go out into business on his own in Jersey City, New Jersey, and in 1905, the company was re-established as Mead Johnson & Company. [3] The firm's first major infant formula was developed in 1910, and Dextri-Maltose, a carbohydrate-based milk modifier was introduced in 1911, making it the first American product for infants to be clinically approved and recommended by doctors. The firm moved to Evansville, Indiana, in 1915, in the wake of World War I, as part of an effort to have easier access to the raw agricultural ingredients that were needed for its products, which required Johnson to build a series of new plants and factories to replace the ones he had left behind in New Jersey. [3]

Edward Mead Johnson died in 1934, and Lambert Mead Johnson succeeded his father as president, and served in the position until 1955, making him the longest-serving president in company history. [3] D. Mead Johnson was the third generation of the family to serve as chief executive of the firm. During his tenure, which lasted from 1955 until the firm's takeover by Bristol-Myers in 1968, the firm's annual sales tripled to $131 million, and grew to nearly 4,400 employees. [4]

Acquisition and spin-off from Bristol-Myers

Bristol-Myers reached agreement in August 1964 for a deal under which Mead Johnson would be acquired, with shareholders receiving a mix of common and preferred stock in a deal valued at $240 million. Mead Johnson's net sales in 1966 were $131 million with earnings of $7.3 million. [5]

Bristol-Myers announced in February 2009 that it was going to spin off Mead Johnson to focus on its primary pharmaceutics business, with an initial public offering estimated to bring in $562.5 million and would leave Bristol-Myers with 90% ownership of the firm. [6] A plan offered in November 2009 would allow shareholders of Bristol-Myers to exchange one dollar of stock in that company for $1.11 worth of shares in Mead Johnson for the 133.5 million shares in the firm, which would value the company at $7.7 billion based on the stock's then current closing price. The stock swap was intended to provide a tax-free exchange. CEO James M. Cornelius of Bristol-Myers said that "With a successful execution of this split-off, we fully consider ourselves a BioPharma company". [7]

Acquisition by Reckitt Benckiser

In February 2017 it was announced that Reckitt Benckiser (RB) was in advanced negotiations to acquire Mead Johnson. [8] [9] On February 10, 2017, Reckitt Benckiser Group announced it had agreed to buy Mead Johnson Nutrition Co. for $16.6 billion. [10]

RB's intention was to acquire Mead Johnson Nutrition for $90 per share in cash. In order to effect the transaction, RB incorporated a subsidiary in Delaware into which Mead Johnson Nutrition has merged, with Mead Johnson Nutrition being the surviving entity at completion. [11]

Mead Johnson announced on June 12, 2017 that the final regulator approval to complete the acquisition had been received. On June 15, 2017 the merger was completed and Mead Johnson became the Infant Formula and Child Nutrition (IFCN) Division of RB.

Related Research Articles

Nestlé Swiss multinational food company

Nestlé S.A. is a Swiss multinational food and drink processing conglomerate corporation headquartered in Vevey, Vaud, Switzerland. It is the largest publicly held food company in the world, measured by revenue and other metrics, since 2014. It ranked No. 64 on the Fortune Global 500 in 2017 and No. 33 in the 2016 edition of the Forbes Global 2000 list of largest public companies.

Smurfit-Stone Container Corporation was a global paperboard and paper-based packaging company based in Creve Coeur, Missouri, and Chicago, Illinois, with approximately 21,000 employees. In 2007, Smurfit-Stone was ranked 13 in PricewaterhouseCoopers' "Top 100" forest, paper, and packaging companies in the world as ranked by sales revenue. The company was also among the world's largest paper recyclers.

Danone French multinational food corporation

Danone S.A. is a Spanish-French multinational food-products corporation based in Paris. It was founded in Barcelona, Spain. It is listed on Euronext Paris where it is a component of the CAC 40 stock market index. Some of the company's products are branded Dannon in the United States.

Abbott Laboratories is an American multinational medical devices and health care company with headquarters in Abbott Park, Illinois, United States. The company was founded by Chicago physician Wallace Calvin Abbott in 1888 to formulate known drugs; today, it sells medical devices, diagnostics, branded generic medicines and nutritional products. It split off its research-based pharmaceuticals business into AbbVie in 2013. The firm has also been present in India for over 100 years through its subsidiary Abbott India Limited, and it is currently India's largest healthcare products company.

Bristol Myers Squibb American pharmaceutical company

The Bristol-Myers Squibb Company (BMS) is an American multinational pharmaceutical company. Headquartered in New York City, BMS is one of the world's largest pharmaceutical companies and consistently ranks on the Fortune 500 list of the largest U.S. corporations. For fiscal 2021, it had a total revenue of $46.4 billion.

SSL International British company

SSL International plc was a British manufacturer of healthcare products. Its best known brands were Durex and Scholl; other significant brands were Sauber and Mister Baby. The company's name was an abbreviation of Seton Scholl London International, its predecessor businesses. In November 2010, SSL International was folded into Reckitt Benckiser.

A dual-listed company or DLC is a corporate structure in which two corporations function as a single operating business through a legal equalization agreement, but retain separate legal identities and stock exchange listings. Virtually all DLCs are cross-border, and have tax and other advantages for the corporations and their stockholders.

Reckitt British multinational consumer goods company

Reckitt Benckiser Group plc, trading as Reckitt, is an Anglo-Dutch multinational consumer goods company headquartered in Slough, England. It is a producer of health, hygiene and nutrition products. The company was formed in March 1999 by the merger of British company Reckitt & Colman plc and Dutch company Benckiser N.V.

Celgene American biopharmaceutical company

Celgene Corporation is a pharmaceutical company that makes cancer and immunology drugs. Its major product is Revlimid (lenalidomide), which is used in the treatment of multiple myeloma, and also in certain anemias. The company is incorporated in Delaware, headquartered in Summit, New Jersey, and a subsidiary of Bristol Myers Squibb (BMS).

Frenchs Brand of prepared mustard, condiments, fried onions, etc.

French's is an American brand of prepared mustard, condiments, fried onions, and other food items that was created by Robert Timothy French. French's "Cream Salad Brand" mustard debuted to the world at the 1904 St. Louis World's Fair. By 1921, French's Mustard had adopted its trademark pennant and begun advertising to the general public. French's is now owned by McCormick & Company.

Guangdong Yashili Group Co., Ltd. is a leading privately owned infant formula and soymilk products company in China. Based in Chaoan in the Chaozhou region of Guangdong province, China and incorporated in the Cayman Islands. The company also has a Hong Kong-listed entity Yashili International Holdings Limited.

Lambertus Johannes Hermanus "Bart" Becht is a Dutch businessman. An executive with more than 35 years of business experience working with consumer brands, Becht is the former Chief Executive Officer of Reckitt Benckiser, which he led from 1995 to 2011 and former Partner at JAB Holding Company, which he joined in 2012. Becht announced his retirement from JAB in 2019.

Dr. Scholls Footwear and foot care brand

Dr. Scholl's is a footwear and orthopedic foot care brand originating in the United States, marketed in some countries as simply Scholl. Since 2021, global rights to the brand have been owned by investment firm Yellow Wood Partners through subsidiary Scholl's Wellness Company, having the purchased the North American rights from Bayer in North America in 2019, and the international rights from Reckitt in 2021.

Centerview Partners is an American independent investment banking firm. Centerview operates primarily as an investment banking advisory firm. Centerview has 60 partners and 300 professionals with expertise across a wide range of industries, geographies, transaction structures and sizes. Centerview is widely regarded as one of the most prestigious investment banking advisory firms, and have advised more than $3 trillion in transactions worldwide.

Wyeth American pharmaceutical company (1860-2009)

Wyeth, LLC was an American pharmaceutical company. The company was founded in Philadelphia, Pennsylvania, in 1860 as John Wyeth and Brother. It was later known, in the early 1930s, as American Home Products, before being renamed to Wyeth in 2002. Its headquarters moved to Collegeville, Pennsylvania and Madison, New Jersey, before they were consolidated with Pfizer's in New York City after the 2009 merger. Most of Wyeth's pharmaceutical assets were acquired by Pfizer in 2009, while its infant and maternal nutrition business was acquired by Nestlé in 2012.

Rakesh Kapoor is an Indian businessman. He was, until September 2019, chief executive (CEO) of Reckitt Benckiser plc, a UK FTSE-listed multinational consumer goods company, a major producer of health, hygiene and home products.

Reckitt and Sons was a leading British manufacturer of household products, notably starch, black lead, laundry blue, and household polish, and based in Kingston upon Hull.

Indivior is a specialty pharmaceuticals business. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

Catalent American pharmaceutical company

Catalent, Inc. is a multinational corporation headquartered in Somerset, New Jersey. It is a global provider of delivery technologies, development, drug manufacturing, biologics, gene therapies and consumer health products. It employs more than 14,000 people, including approximately 2,400 scientists and technicians. In fiscal year 2020, it generated over $3 billion in annual revenue.

References

  1. ↑ "Deals of the day-Mergers and acquisitions | Reuters". Reuters . Archived from the original on 2017-04-09. Retrieved 2017-04-10. Reuters Deals
  2. ↑ "Mead Johnson Nutrition Merger with Reckitt Benckiser Completed". yahoo.com. Archived from the original on 28 January 2018. Retrieved 26 April 2018.
  3. 1 2 3 Our History Archived 2012-09-01 at the Wayback Machine , Mead Johnson & Company. Accessed September 1, 2010.
  4. ↑ Saxon, Wolfgang. "D. M. Johnson, 78; Led Mead Johnson In Rapid Expansion" Archived 2016-08-19 at the Wayback Machine , The New York Times , January 23, 1993. Accessed September 1, 2010.
  5. ↑ Reckert, Clare M. "Exchange of Stock Set; MERGER DEAL SET BY BRISTOL-MYERS" Archived 2013-05-24 at the Wayback Machine , The New York Times , August 25, 1967. Accessed September 1, 2010.
  6. ↑ Staff. "Mead Johnson Set to Test I.P.O. Waters" Archived 2010-02-06 at the Wayback Machine , The New York Times , February 10, 2009. Accessed September 1, 2010.
  7. ↑ Staff. "Bristol-Myers to Split Off Mead Johnson Nutrition" Archived 2010-03-12 at the Wayback Machine , The New York Times , November 16, 2009. Accessed September 1, 2010.
  8. ↑ Thomas Mulier and Paul Jarvis (1 February 2017). "Reckitt Targets Mead Johnson With Surprise $16.7 Billion Bid". Bloomberg. Archived from the original on 2 February 2017. Retrieved 2 February 2017.
  9. ↑ Dana, Mattioli; Dana, Cimilluca (February 1, 2017), Reckitt Benckiser Is in Talks to Buy Mead Johnson, New York City: Wall Street Journal, archived from the original on February 2, 2017, retrieved January 4, 2017
  10. ↑ Chaudhuri, Saabira (February 10, 2017), Reckitt Benckiser to Buy Mead Johnson for $16.6 Billion, The Wall Street Journal, archived from the original on February 11, 2017, retrieved February 12, 2017
  11. ↑ "Commission Decision 08-M-008 2017: Acquisition by Reckitt Benckiser Group Plc. of Mead Johnson Nutrition Company - Philippine Competition Commission". phcc.gov.ph. Archived from the original on 2018-04-26. Retrieved 2017-05-08.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.