Under the agreement, Nestlé Health Science (NHSc) would acquire Aimmune with a cash offer for $34.50 per share, totaling approximately $2.6 billion. The per-share price for Aimmune represents a 174% premium to the company’s closing share price of $12.60 on Aug. 28. Currently, shares of AIMT are trading up 171.6% at $34.22 per share. Nestlé plans to finance the transaction with cash on hand, according to a news release, with the acquisition set to close in the fourth quarter of 2020.
Currently, NHSc has a total investment in Aimmune of $473 million, totaling an approximate 25.6% equity ownership stake. NHSc made its initial investment ($145 million) in the company in November 2016, then invested $30 million in February 2018, $98 million in November 2018 and $200 million in January 2020.
Nestlé said in the release that it expects the acquisition to be accretive to Nestle’s organic growth in 2021 and accretive to cash earnings by 2022/2023.
Aimmune develops Palforzia, the first and only FDA-approved treatment for reducing the frequency and severity of allergic reactions to peanuts, including anaphylaxis, in children ages 4 through 17. Nestlé intends to use the acquisition to extend NHSc’s food allergy portfolio.
“This transaction brings together Nestlé’s nutritional science leadership with one of the most innovative companies in food allergy treatment,” Nestlé Health Science CEO Greg Behar said in the release. “Together we will be able to offer a wide range of solutions that can transform the lives of people suffering from food allergies around the world.”
“The agreement with Nestlé Health Science recognizes the value created by years of commitment and dedication to our mission by the team at Aimmune,” added Aimmune president & CEO Dr. Jayson Dallas. “Delivering Palforzia, the world’s first treatment for food allergy, has been a game-changing proposition in the biopharmaceutical industry and is transformative for the lives of millions of people living with potentially life-threatening peanut allergy.
“This acquisition ensures a level of support for Palforzia and our pipeline that will further enhance their potential for patients around the world living with food allergies.”