How Reckitt Benckeiser’s Startling Bid For Mead Johnson Could Pay Off

Health and hygiene products marketer Reckitt Benckeiser’s bid for baby formula company Mead Johnson may be surprising, but it could also be a clever and potentially lucrative acquisition. RB already has a foot in the door of the nutrition business: in 2012 it purchased Schiff Nutrition (marketer of vitamin brands like MegaRed). And, according to U.K.-based investment firm Dividend Drive, there just aren’t any juicy acquisitions to be made in over-the-counter consumer healthcare. But the primary attraction of Mead Johnson is the fact that both companies have a strong presence in developing markets, particularly Asia and Latin America. Mead Johnson’s specialty – baby formula – is positioned for strong growth in Asia.