Nestlé to Expand Health Science Business With $2.6 Billion Acquisition
Nestlé has agreed to acquire Aimmune Therapeutics, a biopharmaceutical company developing and commercialising treatments for potentially life-threatening food allergies, to create a global leader in food allergy prevention and treatment. Aimmune’s recently approved therapy Palforzia® would expand the Nestlé Health Science (NHSc) portfolio with first and only FDA-approved treatment to help reduce the frequency and severity of allergic reactions to peanuts in children. NHSc is a globally recognized leader in the field of nutritional science.
Food allergies are not only disruptive to everyday life, they can be life threatening. Up to 240 million people worldwide suffer with food allergies, peanut allergy being the most common. Palforzia offers a long sought-after solution for peanut-allergic patients other than avoidance.
“This transaction brings together Nestlé’s nutritional science leadership with one of the most innovative companies in food allergy treatment,” says 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,” comments 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.”
NHSc currently has a total investment in Aimmune of US$473 million, an approximate 25.6% equity ownership stake. NHSc made its initial investment of US$145 million in Aimmune in November 2016, followed by further investments of US$30 million in February 2018, US$98 million in November 2018 and US$200 million in January 2020.
Under the terms of the merger agreement, Nestlé will commence a cash tender offer to acquire all outstanding shares of Aimmune common stock that are not already owned by NHSc, representing a total enterprise value, including the shares of Aimmune held by NHSc, of approximately US$2.6 billion.
Nestlé plans to finance the transaction with cash on hand. Subject to the satisfaction or waiver of customary closing conditions, the transaction is expected to close in the fourth quarter of 2020. The acquisition is expected to be accretive to Nestlé’s organic growth in 2021 and accretive to cash earnings by 2022/23.
