Kasper Jakobsen, Mead Johnson Nutrition’s Chief Operating Officer (NYSE: MJN) and Oscar Carreras, Chairman of Board of Administration for SanCor Cooperativas Unidas Ltda. of Argentina, met today in Buenos Aires to officially establish a joint venture that will expand the availability of high-quality pediatric nutrition products across the Southern Cone of South America. The venture unites a global leader in infant formula and pediatric nutrition with the leading dairy producer in Argentina for the benefit of infants and children across the region. The new joint venture will develop, produce and market innovative pediatric nutritional products under the SanCor Bebé brand, which holds the leading position in the Argentine market. The business and the brand will benefit from the potent combination of the two companies’ expertise. Mead Johnson will provide clinical research, proprietary formulas and product innovation excellence, while SanCor will contribute its deep local market knowledge and high-quality manufacturing capabilities. “Everybody wins with this transaction. Mead Johnson strengthens its presence and growth potential in South America, while SanCor is able to better leverage its outstanding manufacturing base and continue exploration of business opportunities in other promising categories,” stated Oscar Carreras. “More importantly, parents win with greater access to best-in-class products they can feed their children with confidence.” Mead Johnson will invest 850 million Argentine pesos (approximately US$196 million*) for an 80 percent ownership interest in the joint venture. In 2011, SanCor’s turnover in the infant formula and children’s growing-up milk categories totaled nearly 300 million pesos (approximately US$69 million*). “We appreciate SanCor’s leadership. SanCor’s manufacturing expertise is recognized globally and they have established Bebé as the number one brand in Argentina,” commented Kasper Jakobsen. “We are excited about the potential for this venture to accelerate our growth in these key markets and to benefit local babies and children.” The joint venture will continue to produce its products at existing SanCor facilities in Argentina.
Beginning with first quarter 2012 reporting, Mead Johnson will consolidate the joint venture into its overall financial statements. The transaction is not expected to have any material impact on the company’s 2012 earnings, as additional investment in the business, along with interest expense for the deal, will offset any first-year contribution from the venture.* at current exchange rates Forward-Looking Statements Certain statements in this news release are forward looking as defined in the Private Securities Litigation Reform Act of 1995. These statements, which are identified by words such as “expects,” “intends” and “believes,” involve certain risks, uncertainties and assumptions that may cause actual results to differ materially from expectations as of the date of this news release. These risks include, but are not limited to: (1) the ability to sustain brand strength, particularly the Enfa family of brands; (2) the effect on the company’s reputation of real or perceived quality issues; (3) the adverse effect of commodity costs; (4) increased competition from branded, private label, store and economy-branded products; (5) the effect of an economic downturn on consumers’ purchasing behavior and customers’ ability to pay for product; (6) inventory reductions by customers; (7) the adverse effect of changes in foreign currency exchange rates; (8) the effect of changes in economic, political and social conditions in the markets where we operate; (9) legislative, regulatory or judicial action that may adversely affect the company’s ability to advertise its products or maintain product margins; (10) the possibility of changes in the Women, Infant and Children (WIC) program, or increases in levels of participation in WIC; and (11) the ability to develop and market new, innovative products. For additional information on these and other factors, see the risk factors identified in the company’s periodic reports, including the annual report on Form 10-K for 2010, quarterly reports on Form 10-Q and current reports on Form 8-K, filed with, or furnished to, the Securities and Exchange Commission, available upon request or at meadjohnson.com. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. About Mead Johnson Mead Johnson, a global leader in pediatric nutrition, develops, manufactures and distributes more than 70 products sold in over 50 markets worldwide. The company’s mission is to nourish the world’s children for the best start in life. The Mead Johnson name has been associated with science-based pediatric nutrition products over 100 years. The company’s “Enfa” family of brands, including Enfamil® infant formula, is the world’s leading brand franchise in pediatric nutrition. For more information on company, go to www.meadjohnson.com. About SanCor SanCor is a 100% Argentinean dairy cooperative, with 73 years of distinguished history. It processes one-eighth of the milk in the entire country, and it is also the leader in dairy product exports. SanCor products are well-known in Argentina and across Latin America. For more information, go to www.sancor.com.