Acquisitions in 2014
On 19 November 2014, Raisio acquired the Benecol business from the affiliates of Johnson & Johnson in the UK, Ireland and Belgium and amended the agreement on the Northern American markets of Benecol. The acquisition met all the criteria Raisio has set on its acquisitions and it enables the development of Benecol business on Raisio's own terms for the first time since 1997.
The acquisition is estimated to increase Raisio's EBIT by some 9 million euros annually. In 2013, net sales for the J&J's Benecol business in Europe and the USA amounted to almost EUR 76 million, of which the UK and Ireland accounted for some 85 per cent. The purchase price of EUR 88.5 million for the business and stocks was paid when the object of the deal was transferred to Raisio. Majority of the purchase price was allocated to intangible assets. Through the deal, Raisio's goodwill increased by approximately EUR 53 million.
Raisio acquired Johnson & Johnson's Benecol business
Benecol acquisition – a good and important deal for Raisio.
- The deal completed on 19 November 2014
- With the deal, Benecol business returned to Raisio in the UK, Ireland, Belgium and USA
- EBIT impact some 9 million euros annually
- J&J's Benecol net sales for 2013 almost 76 million euros
- Purchase price 88.5 million euros
- The acquisition meets Raisio's criteria on acquisitions
Cilag GmbH International has had the exclusive right to sell and market Benecol products in the UK, Ireland and Belgium. With the acquisition, rights to the Benecol trademark and plant stanol ester patents held by Cilag GmbH International were returned to Raisio. The US business is included in the deal, but McNEIL-PPC, Inc. continues as Raisio's licence partner for the time being. The agreement amendment allows the return of the US Benecol business to Raisio or to Raisio's potential new license partner. Both Cilag GmbH International and McNEIL-PPC are part of Johnson & Johnson.
This arrangement fully met the criteria that Raisio has set on its acquisitions and is in line with the company's vision focusing on healthy and ecological snacks. EV/EBITDA multiple is also in accordance with the target level set in Raisio's acquisition policy. Raisio's growth strategy for its branded business is strongly supported by the acquisition of Benecol business in the UK, Ireland and Belgium as well as by the amendment of the US-related agreement. In terms of Benecol products, Raisio's long-term strategic goal is to enhance competitiveness in the existing markets, to expand into new markets as well as to innovate new products.
The integration of the acquired business as part of Raisio was completed according to plan. Benecol product deliveries continued without interruptions and sales were at good levels.