-- U.S.-based vitamin, mineral, and health supplement (VMHS) company
Schiff Nutrition Group has announced its definitive agreement to be acquired
by Reckitt Benckiser PLC (A+/Stable/A-1).
-- The agreement with Reckitt supersedes the company's previous contract
to be acquired by Bayer Healthcare LLC, a subgroup of Bayer AG
-- We are maintaining our ratings on Schiff on CreditWatch with positive
implications, including the 'B' corporate credit rating.
-- The positive CreditWatch placement reflects the likelihood that we
would raise our rating on Schiff to be on par with that of Reckitt following
the closing of the acquisition, which we expect by year-end.
On Dec. 4, 2012, Standard & Poor's Ratings Services said its ratings on Salt
Lake City, Utah-based Schiff Nutrition Group Inc. would remain on CreditWatch,
where we placed them with positive implications on Oct. 31, 2012.
The CreditWatch reflects our expectation that we will raise our rating on
Schiff to the 'A+' level of Reckitt Benckiser PLC following the completion of
the transaction. Reckitt's bid to purchase Schiff was proposed subsequent to
that of Bayer Healthcare LLC, a subgroup of Bayer AG.
We would also withdraw our ratings on Schiff if the company's existing debt is
repaid by Reckitt following the close of the acquisition, which we expect by
We plan to resolve the CreditWatch listing upon completion of the transaction.
Related Criteria And Research
-- Use Of CreditWatch And Outlooks, Sept. 14, 2009
Ratings Remain On CreditWatch
Schiff Nutrition Group Inc.
Corporate credit rating B/Watch Pos/--
Senior secured B/Watch Pos
Recovery rating 3
Complete ratings information is available to subscribers of RatingsDirect on
the Global Credit Portal at www.globalcreditportal.com. All ratings referenced
herein can be found on Standard & Poor's public Web site at
www.standardandpoors.com. Use the Ratings search box located in the left