Germany’s Bayer, a top name in the pharma circle is set buy U.S. vitamins maker Schiff Nutrition International for an agreed $1.2 billion in a m&a agreement, as it seeks stable sources of growth to complement its more volatile prescription drugs business.
This m&a deal values Schiff at about 3.1 times its forecast annual sales, around the upper end of typical deal multiples of 2-3 in the non-prescription drugs industry.
While Bayer expects to benefit from new prescription drugs like Xarelto for stroke prevention, it has struck a series of a small and medium-sized deals to tap growth in markets like animal health, crop protection and over-the-counter drugs.
The strategy shows signs of bearing fruit as the group raised its full-year earnings forecast in July, in part because of strong demand at its farming pesticides business.
For further deal information visit Current Agreements (subscription required)
Read: more on M&A deals in pharma, biotech, life science partnering deal news, insights and glossary
Related reports:Merger and Acquisition Terms and Agreements
View: Top 50 pharma – overview of top 50 pharmaceutical companies by revenue – partnering activity, deal news, partnering dealtalk
View: Current Partnering’s Partnering Scorecard – view top life science partnering deals by value
View: Current Partnering’s Deal Metrics – the latest deal trend infographics for life science deal making
View: Current Partnering’s Big Pharma Deal Making Scorecard – latest trends in big pharma deal making activity