Schiphol, 14 November 2005 - Royal Numico N.V. announces that it has signed an agreement to acquire
EAC Ltd. A/S's Nutrition business, a leading Asian Baby Food company, for a total consideration of
Euro 1.2 bn in cash on a cash and debt free basis. The acquisition is expected to be earnings neutral by the
end of the first full year of consolidation - excluding exceptional items - and accretive from there
onwards. In connection with the acquisition, an approx. Euro 550 mln equity offering by way of an
accelerated book built offering will be launched today.
Key Highlights of the Transaction
• A leading specialised Baby Food company in Asia Pacific
• Leading market positions in key countries – China, Malaysia and Thailand
• Strong growth track record in markets with great upside potential
• Strong brand: Dumex – well regarded by the Medical Community
• Strong management with in-depth local expertise
• A stand-alone unit complementary with Numico’s business
• Transaction expected to be EPS neutral in 2006 and accretive from 2007 onwards
The acquisition will provide Numico with leading market positions through the highly recognised Dumex brand in the fast growing Asian Infant Nutrition market, most notably in China, Malaysia and Thailand. The Asian Infant Nutrition market forms a significant and sustainable opportunity characterised by a very low per capita consumption, a high number of births and increasing GDP per capita, offering ample growth opportunities. This acquisition provides Numico with a strong platform to benefit from the long-term growth potential of the Asia Pacific market. EAC Nutrition is an excellent strategic and geographical fit with Numico’s existing business in Indonesia, Australia and New Zealand.
EAC Nutrition will be managed as a separate division within Numico. Numico’s Operations and Research & Development capabilities will be integrated into the EAC Nutrition organisation to maximise opportunities and cost synergies.