SCHIPHOL AIRPORT, Netherlands, June 17, 2005 (PRIMEZONE) -- Royal Numico N.V. announces that the Italian antitrust authority has approved Numico's acquisition of Mellin S.p.A., Italy's fastest growing Baby Food company. The transaction is expected to close before the end of June. Commenting on the approval from the Italian antitrust authority, Jan Bennink, CEO of Numico, commented: "We are very pleased with the positive outcome from the Italian antitrust authority which now ensures completion of this acquisition before the end of June. The agreed reduction of consumer prices, which formed an integral part of our business plan, will help bolster growth in this very attractive market with low per capita consumption. We remain confident with the anticipated level of synergies which will allow the acquisition to be accretive from year one."
Numico will acquire 100% of the share capital of Mellin for a total consideration of EUR 400 million, which will be paid equally in cash and shares. The shares are subject to a lock-up period of 6 months. Associated transaction costs are expected to amount to EUR 5 million which will be taken in the second quarter of 2005 as part of the overall consideration.
In order to obtain a rapid clearance of the transaction, Numico has confirmed to the Italian antitrust authority that it will reduce the prices for Milupa and Mellin Stage 1 and Stage 2 infant milk formula as well as for some specific specialty formulas. This price reduction was already factored into the initial business plan that was made for the combined entity. The Italian antitrust authority preferred a formal commitment of Numico on this point in view of the current situation on the Italian market which is characterised by relatively high prices.
Mr. Marco Fossati, Chairman and CEO of Findim and STAR, will join Numico's Supervisory Board following completion, for which approval was granted at the AGM of 11 May 2005.
Royal Numico is a high-growth, high-margin specialised nutrition company with leading positions in Baby Food and Clinical Nutrition and brings products to the market under the brand names Nutricia, Milupa and Cow & Gate, among others. The company serves customers in over 100 countries and employs approximately 11,000 people (see also: www.numico.com).
http://hugin.info/130673/R/999031/152341.pdf
For any questions you might have, please contact: Royal Numico N.V. Corporate Communications tel. +31 20 456 9077 Royal Numico N.V. Investor Relations tel. +31 20 456 9003
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