Bayer boosts One-A-Day supplement portfolio with Schiff acquisition to the tune of $1.2 billion

MORRISTOWN, N.J. — Bayer HealthCare on Tuesday signed a merger agreement to acquire Schiff Nutrition International, and with that, prominent supplement brands Digestive Advantage, MegaRed, Move Free and Airborne. These four products accounted for 70% of all Schiff sales, noted Marijn Dekkers, Bayer CEO, during an analyst call Wednesday morning. "This acquisition will strengthen Bayer's leading OTC business and complement our existing nutritionals business with well-established strong brands," he said. 

"Schiff has been on our radar screen for a while, particularly because of the fact that they are active in the nutritional supplement part of the business where we would like to strengthen our portfolio in the United States," Dekker said. "We have a number of vitamin products like One-A-Day and Berocca and Flintstones for children. And Schiff is a nice opportunity to augment the nutritional supplement."

“We will utilize our extensive marketing, sales and distribution expertise to further develop the strong brands we are acquiring,” stated Jörg 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.” 

One example of complementary marketing opportunities identified by Dekkers included a "possible interplay between Aleve to relieve acute joint and muscle pain and Move Free to support joint health."

Schiff generated net sales of $259 million for its fiscal year ended May 31. On Sept. 18, Schiff announced that net sales for fiscal year 2013 were projected to grow between 43% and 46%. Expected sales growth included contributions from new products and brand building, as well as Airborne, which was acquired by Schiff on March 30. 

The transaction values Schiff at approximately $1.2 billion. Closing is subject to customary closing conditions and is expected by year-end 2012.