By Dominic Chopping
Finnish food processing company Raisio Oyj (RAIVV.HE) said
Wednesday it has paid EUR88.4 million for cholesterol-lowering food
brand Benecol in the UK, Ireland and Belgium from Cilag GmbH
International, and amended its North American rights agreement with
McNEIL-PPC, Inc.
Both Cilag GmbH International and McNEIL-PPC, Inc. are part of
the Johnson & Johnson Family of Companies (JNJ).
"In terms of Benecol products, Raisio's long-term strategic goal
is to enhance competitiveness in the existing markets, to expand
into new markets as well as to innovate new products," said Raisio
chief executive Matti Rihko. "Through this arrangement, we will
have the opportunity to develop Benecol business on our own terms,
following our strategic objectives."
The amended agreement allows for the return of the Benecol
rights and transfer of certain U.S. assets to Raisio or its
possible new licensee at a later date. Raisio will have all the
rights to the Benecol brand and plant stanol ester, the Benecol
product ingredient, allowing Raisio to develop the business
globally on a new basis, it said.
The acquisition is financed by a long-term loan of EUR80 million
and the company expects to record acquisition-related costs of
EUR700,000 in the fourth quarter of 2014.
In 2013, net sales of Benecol in the acquired European countries
and U.S. were EUR76 million, of which the UK and Ireland accounted
for 85%.
The acquisition is estimated to increase Raisio's earnings
before interest and tax by EUR9 million annually.
-Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter:
@WSJNordics
Subscribe to WSJ: http://online.wsj.com?mod=djnwires