US pharmaceutical giant Bristol-Myers Squibb Co. plans to spin off baby formula group Mead Johnson Nutrition.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
In an announcement yesterday (15 November), Bristol-Myers said it expects the split-off to be a tax-advantaged way to further deliver value to its shareholders.
Bristol-Myers Squibb shareholders can exchange some, none, or all of their shares of Bristol-Myers Squibb common stock for shares in Mead Johnson at a discounted rate.
For each $1.00 of Bristol-Myers Squibb common stock accepted in the exchange offer, the tendering shareholder will receive approximately $1.11 of Mead Johnson common stock.
As part of the exchange offer, Bristol-Myers Squibb will convert all of its Mead Johnson class B common stock into Mead Johnson class A common stock. Upon the completion of the exchange offer, only Mead Johnson class A common stock will remain outstanding.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe split-off is expected to be net cash flow positive to the BioPharma business and accretive to EPS beginning in 2010.
“This marks the latest step in our company’s transformation into a BioPharma leader,” said James Cornelius, chairman and CEO of Bristol-Myers Squibb.
Cornelius said that now was the “right time” to spilt-off Mead Johnson given its “excellunt performance” following its IPO earlier year.
At the end of October, Mead Johnson hailed a “solid performance” when it posted a 13% jump in earnings for the first nine months of the year.
