In This Article:
Nestle SA, the world’s largest food & beverage company, said it will completely acquire a biopharmaceutical company Aimmune Therapeutics, which has the first and only FDA-approved treatment to help reduce the frequency and severity of allergic reaction to peanuts, for $2 billion.
Nestle Health Science (NHSc) currently has a total investment in Aimmune of $473 million, an approximate 25.6% equity ownership stake. Around 19.6% is voting common stock and the balance non-voting preferred stock.
NHSc made its initial investment of $145 million in Aimmune in November 2016, followed by further investments of $30 million in February 2018, $98 million in November 2018 and $200 million early this year, the company said in a press release.
Under the terms of the merger agreement, Nestle S.A.’s wholly-owned subsidiary, Société des Produits Nestle S.A. (SPN), will commence a cash tender offer to acquire all outstanding shares of Aimmune common stock that are not already owned by NHSc for $34.50 per share in cash, representing a total enterprise value, including the shares of Aimmune held by NHSc, of about $2.6 billion.
The $34.50 per share acquisition price represents a 174% premium to Aimmune’s closing share price on August 28, 2020 of $12.60.
After this announcement, Aimmune Therapeutics shares closed 172% higher at $34.22 on Monday; the stock is up over 2% so far this year.
Executives’ comments
“This transaction brings together Nestlé’s nutritional science leadership with one of the most innovative companies in food allergy treatment,” said Nestlé Health Science CEO Greg Behar. “Together we will be able to offer a wide range of solutions that can transform the lives of people suffering from food allergies around the world.”
“The agreement with Nestlé Health Science recognizes the value created by years of commitment and dedication to our mission by the team at Aimmune. Delivering Palforzia, the world’s first treatment for food allergy, has been a game-changing proposition in the bio-pharmaceutical industry and is transformative for the lives of millions of people living with potentially life-threatening peanut allergy,” said Jayson Dallas, MD, President and Chief Executive Officer of Aimmune.
“This acquisition ensures a level of support for Palforzia and our pipeline that will further enhance their potential for patients around the world living with food allergies.”
Nestle stock forecast
Morgan Stanley gave a target price of CHF 110 with a high of CHF 125 under a bull-case scenario and CHF 80 under the worst-case scenario. Jefferies increased their stock price forecast to CHF 109 from CHF 94.