Nestlé Launches $2.6B Tender Offer For Aimmune Therapeutics

Nestlé S.A. has announced that its wholly-owned subsidiary, SPN Merger Sub, Inc, has now made a cash tender offer to buy all outstanding shares of food-allergy specialist Aimmune Therapeutics (AIMT) for $34.50 per share in cash, without interest and subject to any withholding taxes.

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This represents a marginal premium to AIMT’s closing price on Friday of $34.20. However, the companies first announced the deal at the end of August, when the offer price represented a 174% premium to where AIMT was trading.

According to the statement, Aimmune’s board of directors have declared the offer to be fair and in the best interests of Aimmune and its stockholders. It has recommended that shareholders accept the offer, which will expire at 12:00 midnight, Eastern time, on October 9, 2020, unless extended or earlier terminated.

Any extension will be announced before 9:00 a.m., Eastern time, on the first business day after the expiration date.

In addition, Aimmune will file today a Solicitation/Recommendation Statement on Schedule 14D-9 and a Schedule 13E-3 transaction statement relating to the Offer with the SEC.

Aimmune’s Palforzia is the first and only FDA-approved treatment to help reduce the frequency and severity of allergic reaction to peanuts, including anaphylaxis, in children aged 4 through 17.

Up to 240 million people worldwide suffer with food allergies, peanut allergy being the most common. Palforzia offers a long sought-after solution for peanut-allergic patients other than avoidance.

“This transaction brings together Nestlé’s nutritional science leadership with one of the most innovative companies in food allergy treatment,” said Nestlé Health Science CEO Greg Behar. “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.”

Stifel Nicolaus analyst Derek Archila notes that Nestlé already owns ~20% of AIMT’s outstanding shares. “Given the challenging launch thus far for Palforzia largely due to COVID19 and its cash runway, we think this is an ideal outcome for [AIMT] investors” commented the analyst.

He pointed out that this is the third deal in the immunology space – with MNTA and PRNB both acquired recently, which he thinks “is notable and a growing sign of interest in this therapeutic category among strategic acquirers.” (See Aimmune stock analysis on TipRanks)

Shares in AIMT are up 2% year-to-date and the company has a cautiously optimistic Moderate Buy Street consensus. That’s with 4 recent buy ratings vs 6 hold ratings. Meanwhile the average analyst price target of $34.25 is flat with the current share price.