UK-based Reckitt Benckiser Group has agreed to acquire U.S. baby food manufacturer Mead Johnson Nutrition Company. The total value of the transaction is $17.9 billion including Mead Johnson’s net debt.

The acquisition will be financed through new fully underwritten debt facilities with Bank of America Merrill Lynch, Deutsche Bank and HSBC. These facilities include $9 billion in term loans over three to five years and $8 billion in bridge funding to cover the cash consideration, plus a further $3 billion to refinance existing Mead Johnson bonds if required.

They also include an additional £1 billion ($1.25 billion) revolving credit facility to provide financing headroom from the date of completion. RB expects to refinance the bridge by the issuance of bonds to reflect the expected cash flows of the combined group.

Additionally, the board does not intend to buy-back any further RB shares until the debt level is materially lower.

RB is in discussion with the rating agencies and expects to retain a strong investment grade credit rating.

Rakesh Kapoor, CEO of RB, said, “The acquisition of Mead Johnson is a significant step forward in RB’s journey as a leader in consumer health. With the Enfa family of brands, the world’s leading franchise in infant and children’s nutrition, we will provide families with vital nutritional support. This is a natural extension to RB’s consumer health portfolio of Powerbrands which are already trusted by millions of mothers, reinforcing the importance of health and hygiene for their families.”

Mead Johnson’s Enfa family of brands is the world’s leading infant and children’s nutrition franchise by sales.