It was back in 2014 when Danone reportedly considered the takeover of Mead Johnson Nutrition.
At the time, the French multinational was preparing to sell its medical nutrition business to fund the acquisition, while the Illinois-based infant formula manufacturer was in the midst of a high-stakes US SEC probe into its Chinese operations, the outcome of which could materially impact the firm’s profit and revenue.
But Danone never made its move; and it was Reckitt Benckiser that paid around $17bn to acquire the Enfamil maker in 2017. The move was hailed as a ‘significant step forward in RB’s journey as a global leader in consumer health’ and one that would ‘strengthen RB’s presence in developing markets, particularly China’.
Alas: the deal has since been dubbed “the worst acquisition by a major UK company in the last decade” by The Guardian, and with good reason.
Mead Johnson has underperformed financially and has been implicated in highly-publicised product liability lawsuits in the US concerning necrotising enterocolitis (NEC) – a potentially deadly disease in preterm infants – allegedly linked to certain cow-based formula products. Some verdicts have gone in the company’s favour while one has gone against it, and there are two outstanding cases yet to be heard this year and next.
All this is creating noise as Reckitt is trying to offload Mead Johnson as a non-core asset. When announcing the company’s intention to sell in 2024, Reckitt CEO Kris Licht said Mead Johnson was ‘a very good business’ but that ‘complex litigation’ had created uncertainty.
Nearly two years later, no buyer has come forward – but recent reports are pointing to Danone once again.
Is the time right for a deal this time?
But are Danone’s strategic priorities aligned with an acquisition in 2026?
Danone’s Specialised Nutrition division was its most profitable category in 2025, accounting for €9.3bn in sales. Within that, medical nutrition has been a consistent revenue driver, with strong growth quarter over quarter and market-leading positions in Europe and China.
Danone is hoping to replicate this growth model in North America, where it’s expanded its medical nutrition presence through M&As.
But in infant formula, Danone remains behind competitors – including Mead Johnson – in market share terms. Acquiring the infant and pediatric nutrition company would allow Danone to scale-up its infant nutrition business and significantly bolster its market share position in the second-largest market for infant formula globally.
A deal would strengthen Danone’s specialised nutrition product mix across Asia and Latin America and enable the two companies to achieve synergies on the R&D front, which could accelerate science and nutrition innovation.
The bigger questions is, how much would Reckitt be willing to sell Maed Johnson for?
Reckitt: Under pressure but optimistic
The Dettol-to-Durex major recently sold its Essential Home portfolio (valued at around $5bn) as part of its restructure plans. Now, the company is facing downward share pressure as US infant formula litigation, potential tariff impacts, and the restructure execution weigh on sentiment. Reckitt’s share price hit a nine-month low as rumours of a Mead Johnson acquisition intensified, slipping back to around 5,160p on Friday, April 10, 2026.
The company’s Q1 2026 performance – to be reported on April 22 – is also expected to be depressed due to a weaker cold and flu season, RBC says. Barclays has cut the price target for the company, but the overall analyst consensus is moderate to optimistic.
That’s in large part because Reckitt’s core operations are still expected to grow – but uncertainty around Mead Johnson muddles the outlook, and a sale is long overdue. A significant loss on the $17bn acquisition is more than likely, but just how much that would come to remains guesswork.
A look at Danone’s latest Universal Registration document reveals the dairy major is in a solid financial position: with more than €9bn in liquidity, net debt of around €8.4bn (net debt to EBITDA at 2.0x) and free cash flow of around €2.8bn. This supports the pursuit of bolt-on acquisitions – such as the recent purchase of meal replacement major Huel – or potentially larger strategic moves.
One thing is certain: a Mead Johnson acquisition would give Danone a major boost in the North American infant formula space and significantly bolster its global specialised nutrition division.
The deal would come with litigation risk: but at the right price, the strategic upside may well outweigh the uncertainty.
