Stephen Golsby, Mead Johnson’s chief executive officer said: "This transaction represents the important final step in our journey to be a fully independent public company. We believe the decision to split-off Mead Johnson reflects confidence in the success of our growth strategy and our strong financial performance since our IPO (initial public stock offering) in February, as well as BMS' objective to focus on their core BioPharma business."
Mead Johnson develops, manufactures, markets and distributes nutritional brands in 50 countries worldwide. The company claims its Enfa group of brands, including Enfamil(R) infant formula, is the world's leading brand franchise in pediatric nutrition. In addition to baby formulas, including Enfamil that generated 61 per cent of the company’s revenue of $2.88bn last year, the company sells nutritional supplements for pregnant and nursing women, and people with metabolism problems.
James Cornelius, chairman and chief executive officer of Bristol-Myers Squibb, said: ““Now is the right time to move forward with a split-off, given the excellent performance of Mead Johnson since the IPO earlier this year and our confidence in the current and future performance of our biopharmaceuticals business.
“By executing our healthcare divestment strategy, we have sharpened our BioPharma focus, improved the overall financial strength of the company and supported our ability to pursue strategic business development opportunities. All of these actions help us fulfill our mission to discover, develop and deliver innovative medicines to help patients prevail over serious diseases,” said Cornelius.
Shareholders in his company will receive $1.11 of Mead Johnson stock for each $1.00 tendered in Bristol-Myers shares. Mead Johnson shares have risen 89 per cent since the stock’s first public sale last February.