Bayer diversifies with $1.2bn Schiff deal Bayer is to buy Schiff Nutrition International of the US for $1.2bn, strengthening the non-prescription drug operations of the German healthcare group. The company has agreed to pay $34 a share for the New York-listed business, which sells vitamins and nutritional supplements including the brands MegaRed, Move Free and Airborne, representing a 48 per cent premium to Monday's closing share price. The move marks the latest diversification of large drug companies beyond doctor-prescribed medicines and an increasing shift into "nutraceuticals" sold over the counter with health claims. News of the deal came as Bayer posted third-quarter net income down 18 per cent compared with last year to €528m on sales up 12 per cent to €9.7bn on the back of growth in revenues from its crop sciences and healthcare divisions, which was ahead of market expectations. Core earnings per share were up 7 per cent on last year to €1.20. Bayer added €205m in anticipated compensation payments for venous blood clots linked to its Yaz contraceptive. The company maintained sales guidance growth for the full year of 4-5 per cent; core earnings per share growth of "about 10 per cent" and a "high single-digit percentage" rise in earnings before interest, tax, depreciation and amortisation before special items. It said restructuring expenses would be €200m higher in the fourth quarter. Schiff, based in Salt Lake City and employing 400 staff, reported net income of $13.7m on sales of $259m in the year to May 31. Berenberg, in a research note, said the price paid "isn't cheap for a consumer business." Jefferies, the broker, said the multiple was justified by the 43-46 per cent projected sales growth for the year.