The deal builds on an existing relationship between the two companies, as Bega has been a certified ingredient supplier for MJN products since 2009.
Kasper Jakobsen, president and chief executive officer, said supply chain flexibility is important in the pediatric nutrition category, adding the deal further strengthens the company’s ability to protect and expand growth in China by creating additional capacity and the ability to adapt to a changing regulatory environment.
“In our drive to become even more consumer-centric, this move also enables us to better respond to evolving consumer preferences and to compete effectively in additional market segments in China,” Jakobsen said.
The transaction is expected to close in the second quarter of 2017.