Danone Shakes Up Elderly Care Market With Offer For Medical Nutrition USA
This article was originally published in The Tan Sheet
Executive Summary
Danone's $62.3 million bid for Medical Nutrition USA will boost the French firm's U.S. nutritional product business, but securities litigators fishing for clients say the deal may shortchange MN shareholders
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Danone finishes Medical Nutrition acquisition
Medical Nutrition USA becomes Danone North America's wholly owned subsidiary July 22, with $4 paid for each outstanding share. Danone looks to become more competitive in the long-term care product category, where it competes primarily with Nestle. The takeover was announced June 11 to some outcry, as lawyers investigating the deal claimed stockholders did not get a fair deal. They argued the company, which posted a 29.7 percent increase in net sales in the preceding quarter, should have held out for a larger offer 1("The Tan Sheet" June 21, 2010)
Medical Nutrition USA branded products gain
The maker of Pro-Stat liquid protein products reports branded sales rose more than 35 percent in its fiscal 2010 first quarter. Medical Nutrition's net sales in the February-April period increased 29.7 percent to $4.4 million, while net income improved to $153,600 from a $143,900 loss in the year-ago period, the firm said June 3. Englewood, N.J.-based Medical Nutrition also noted a clinical study published in the journal Urology shows 91 percent of women with recurrent urinary tract infections were symptom-free while taking the firm's UTI-Stat product
Mead Johnson Likely To Draw Suitors Following BMS Split
Mead Johnson's impending split-off from Bristol-Myers Squibb, announced Nov. 16, makes the rapidly growing nutritional company an appealing acquisition target for the back half of 2010, analysts predict