(Reuters) - Reckitt Benckiser (RB.L) has agreed to buy U.S. baby formula maker Mead Johnson Nutrition MJN.N for $16.6 billion, giving the British consumer goods company a new product line and expanding its presence in developing markets. REUTERS/Brendan McDermid

Reckitt, the maker of Lysol cleaners, Durex condoms and Mucinex cold medicine, said on Friday it will pay $90 in cash for Mead Johnson shares, a 30 percent premium to their close on Wednesday last week, the day before Reckitt said it was in advanced talks with the maker of Enfamil baby formula. The deal should add to Reckitt’s earnings in the first full year after completion and by the third year it is expected to boost earnings per share by a double-digit percentage, with 200 million pounds of annual cost savings.
British consumer goods company Reckitt Benckiser agrees to buy U.S. baby formula maker Mead Johnson Nutrition for $16.6 billion.