Nestle To Pay $11.85 billion for Pfizer Nutrition
Nestlé SA on April 23 announced it has an agreement to acquire Pfizer Inc.’s nutrition business for $11.85 billion. Nestle officials said the acquisition will enhance the company’s position in global infant nutrition, an area Nestle has been working on lately.
Nestlé officials said the unit has a “complementary portfolio and strong presence in high-growth markets.” “Pfizer Nutrition [is] a high-quality, high-growth infant nutrition business with strong brands, value-creating and accretive to the Nestlé model,” said a company statement. Nestlé estimates the acquired business’ 2012 sales at $2.4 billion.
The transaction is subject to regulatory approvals. Bloomberg News reported Paris-based Danone also was bidding on the business.
“Infant nutrition has been at the heart of our company since it was founded in 1866,” said Nestlé CEO Paul Bulcke. “Pfizer Nutrition is an excellent strategic fit, and this acquisition underlines our commitment to be the world’s leading nutrition, health and wellness company.” He noted 85 percent of the acquisition’s sales are in emerging markets.
“We will be able to combine well-known brands like S-26 Gold, SMA and Promil with our existing portfolio of trusted and successful brands such as Nan, Gerber, Lactogen, Nestogen and Cerelac infant cereal,” read the company statement.