Bayer HealthCare has signed a merger agreement to acquire Schiff Nutrition International, a company offering vitamins and nutritional supplements in the U.S. and other countries, for $1.2 billion, representing a value of $34 per share in cash.

Schiff’s product portfolio includes core brands MegaRed, Move Free and Airborne, among others. Closing is subject to customary closing conditions and is expected by year end 2012.

“Bayer is committed to augment its organic growth with strategic bolt-on acquisitions. This transaction represents an excellent strategic fit for our HealthCare business,” said Dr. Marijn Dekkers, CEO of Bayer. “The Schiff business significantly enhances our presence and position in the United States, which accounts for more over-the-counter and nutritional products sales than any other country in the world.” 

Dr. Jörg Reinhardt, CEO of Bayer HealthCare, added, “We will utilize our extensive marketing, sales and distribution expertise to further develop the strong brands we are acquiring. We will also look to leverage Schiff’s new technology platforms with innovation potential for other Bayer-owned brands and markets globally.” 

Schiff generated net sales of $259 million for its fiscal year ended May 31, 2012. On September 18, 2012, Schiff publicly announced that net sales for fiscal year 2013 were projected to grow between 43% and 46%. Expected sales growth includes contributions from new products and brand building as well as Airborne, which was acquired by Schiff on March 30, 2012. 

Schiff employs approximately 400 people with its headquarters and manufacturing site based in Salt Lake City, Utah, as well as offices in Emeryville, Calif.