1 / 31

Merger & Acquisition Proposal

Merger & Acquisition Proposal. Team 1 Abhishek Singh | Efesa Origbo | Shen Ge | Udayan Sathe April 2011. Outline. Profile: Nestle SA Industry Analysis: Nutrition Acquisition Targets Potential Targets Recommended Target Strategic Rationale for Acquisition Valuation Timelines

peri
Download Presentation

Merger & Acquisition Proposal

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Merger & Acquisition Proposal Team 1 Abhishek Singh | Efesa Origbo | ShenGe | UdayanSathe April 2011

  2. Outline • Profile: Nestle SA • Industry Analysis: Nutrition • Acquisition Targets • Potential Targets • Recommended Target • Strategic Rationale for Acquisition • Valuation • Timelines • Financial & Risk Analysis • Conclusion

  3. Profile: Nestle SA • Largest food and beverage company in the world • Headquartered in Vevey, Switzerland • 278,000 employees • 2010 Revenue: CHF 109.7B (USD 124.3B) • 4 Globally Managed Businesses • Nestle Nutrition • Nestle Waters • Other Food and Beverages • Nestle Pharma

  4. Financial Performance: Nestle Million USD Source: Mergent Online

  5. Nestle Stock Performance Source: Yahoo! Finance

  6. SWOT Analysis: Nestle

  7. Industry analysis

  8. Five Forces Analysis: Kid’s Nutrition Potential Entrants Suppliers Inter-Firm Rivalry Buyers Low Substitute Products Moderate High

  9. Key Markets for Baby Food (USD) Source: Mintel Global Market Navigator

  10. Baby Formula Market Share: China Source: Mintel Global Market Navigator

  11. ACQUISITION TARGETS

  12. Evaluation Matrix

  13. RECOMMENDED TARGET Mead Johnson Nutrition

  14. Profile: Mead Johnson Nutrition • A global leader in pediatric nutrition • Portfolio of 70+ products to mothers, health care professionals in over 50+ countries • Enfamil, the company's flagship brand commanded 11.7% of the $22.3 billion market  • 10.2% market share of China with an annual rise of 15% • Product Portfolio • Infant formula • Children’s nutrition

  15. Financial Performance: Mead Johnson Million USD Source: Mergent Online

  16. Financial Performance: Mead Johnson Source: Yahoo! Finance

  17. SWOT Analysis: Mead Johnson

  18. Acquiring mead johnson Strategic Rationale

  19. Specialty Infant Formula Strategic Fit Kid’s Nutritional Products Infant Foods Mead Johnson Infant Formula Nestle Nutrition

  20. Benefit to Nestle Source: Mergent Online

  21. Benefits to Mead Johnson Global Footprint – Mead Johnson Nutrition Source: Mead Johnson Corporate Website

  22. …benefits to Mead Johnson Global Footprint – Nestle Source: Nestle Corporate Website

  23. …benefits to Mead Johnson Source: Mergent Online

  24. Valuation & Timelines

  25. Valuation of Acquisitions Source: Mint Global EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization

  26. Acquisition Timelines Source: Mint Global

  27. Financial & risk analysis

  28. Income Statement: Post Acquisition

  29. Risk Analysis M H M H M H M M

  30. Conclusion • There is the profitable infant formula market in Asia in which Nestle does not have a strong presence • Mead Johnson is the premiere brand for infant formulas in the US and is a dominating presence in China • The acquisition of Mead Johnson by Nestle will provide significant market power, and increased growth rates of revenue and net earnings.

  31. Thank you!

More Related