Nestle has said it plans to pay $2 billion to gain full ownership of peanut allergy treatment maker Aimmune Therapeutics as the Swiss company expands its fast-growing health science business.
Nestle, whose shares were up 0.6% said it is offering a 174% premium to Aimmune’s closing share price of $12.60.
In a statement, Nestle said it values the California-based biopharmaceutical firm, which it has been working with since 2016 and in which it already has a stake of around 25.6%, at $2.6 billion.
Nestle estimates that up to 240 million people worldwide suffer from food allergies, with peanut allergy being the most common, and with Aimmune, NHS will have prevention, diagnostic and medical treatment options available.
Aimmune’s Palforzia peanut allergy treatment, which recently gained U.S. approval for children, has sales potential of $1 billion, NHS head Greg Behar said.
The deal is expected to add to organic growth in 2021 and to cash earnings by 2022/23.