Nestlé SA (OTC: NSRGY) subsidiary Nestlé Health Sciences (NHSc) acquires biopharmaceutical company Aimmune Therapeutics, Inc. (Nasdaq: AIMT), under a definitive deal, announced this last Monday, sending its stock soaring during the pre-trading session.

What happened: NHSc will purchase the stake in Aimmune through its wholly-owned subsidiary Société des Produits Nestlé SA (SPN) for an enterprise value of $ 2.6 billion.

All shares that are not currently owned by Nestlé will be purchased at $ 34.50 per share through a cash tender offer. Upon completion of the acquisition, Aimmune will be the surviving company and SPN will be the merged entity.

If approved, the merger deal is expected to close in the fourth quarter later this year.

Why is this important: From the $ 145 million investment in November 2016, NHSc gradually increased its stake in Aimmune to a 25.6% stake in January 2020. With a total investment of $ 473 million, Nestlé owns 19.6% ordinary shares with voting rights and the remainder in non-voting shares. preferred stock.

The purchase price of $ 34.50 per share represents a 174% premium over Aimmune’s closing price of $ 12.60 at the end of trading hours on August 28.

With this merger, Nestlé expects a boost not only to organic growth in 2021, but also to cash profits from 2023.

Aimmune currently has the only treatment approved by the Food and Drug Administration that reduces allergic reactions to peanuts in children aged 4 to 17 years.

Price action: Aimmune shares traded up 170.1% to $ 34.03 in the pre-market session on Monday.

Photo courtesy of historian Wiki N Oh via Wikimedia