Nestle SA agreed to buy Aimmune Therapeutics Inc in a US$2.6 billion deal, adding a leader in the treatment of peanut allergies in its biggest health-science push yet.
The Swiss owner of Nespresso will pay US$34.50 a share for the US biotech firm, almost triple its market value.
Aimmune makes Palforzia, the first regulatory-approved treatment to help reduce allergic reactions to peanuts in children and teens in the US.
Photo: Reuters
Chief executive Mark Schneider has been cultivating Nestle’s health-science arm while shedding slower-growing businesses in areas such as bottled water and sweets.
The deal is a “significant milestone in Nestle Health Science,” said Jean-Philippe Bertschy, an analyst at Bank Vontobel in Zurich, Switzerland. “Nestle has been very vocal lately in its intention to strengthen its position with acquisitions.”
Palforzia, which exposes patients to small doses of peanut protein over time, got approval from the US Food and Drug Administration (FDA) in February.
Including a 26 percent stake that Nestle’s health-science arm already holds in Aimmune, the deal has an enterprise value of about US$2.6 billion, the Swiss company said.
The price represents a 174 percent premium to Aimmune’s close on Friday. The amount to be paid for the shares is about US$1.7 billion, according to calculations by Bloomberg.
Schneider has said he is keen to buy more companies after selling Nestle’s US confectionery operations and placing its US ice cream business in a joint venture with private equity firm PAI Partners.
Nestle’s cash pile has been bolstered with a US$10 billion sale of a dermatology business.
The Vevey-based company has been dabbling in health-science for more than two decades with mixed results.
Palforzia is the first health product Nestle with the potential for significant sales. Analysts have estimated its revenue might exceed US$1 billion in 2025.
Nestle has been working on the acquisition for three months, Greg Behar, head of its health-science unit, said in an interview.
The price is 7 percent below Aimmune’s 52-week high, and COVID-19 has had a big impact on the business, which began selling Palforzia just as the US was entering lockdowns.
Nestle said it expects the Aimmune deal, which will be financed with cash on hand, to close in the fourth quarter.
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