12 December, 2007 – Food giants Heinz and Kraft are considering a bid for Bristol Myers' Mead Johnson business, industry sources are reported as saying.
Bristol Myers said last week it was looking again at alternatives for its Mead Johnson and ConvaTec companies.
UK media sources quoted two bankers who said, in general, food outfits are keen on large infant feeding brands.
The deal makes sense because Heinz has long been looking for a US baby feed business to complement its European-based company Plasmon. Heinz’s previous interest in Gerber food, after it had been divested by Novartis, showed the company’s intent in this area, the analysts said.
However, Nestle, who eventually bought Gerber for US$ 5.5 billion in April, were unlikely to attempt to acquire Mead Johnson the same sources added.
Mead Johnson, one of the top two US formula brands, is considered to be such as attractive proposition as baby formula and infant food products command more loyalty than most other food sectors.