Swiss food giant Nestlé has agreed to acquire Pfizer Nutrition for $11.85 billion, it has been announced.
Nestlé said the acquisition would be a strategic fit with its infant nutrition business, given US-based Pfizer Nutrition’s complementary portfolio and strong presence in high-growth markets.
Nestlé described Pfizer Nutrition as a high-quality, high-growth infant nutrition business with strong brands, value-creating and accretive to the Nestlé model.
Pfizer’s well-known brands such as S-26 Gold, SMA and Promil will be added to Nestlé’s existing stable of names, which include Nan, Gerber, Lactogen, Nestogen and Cerelac infant cereal.
Nestlé has estimated Pfizer Nutrition’s 2012 sales to be $2.4 billion. It said it expected the acquisition to be accretive to the Nestlé model both for growth and margins as well as the group’s earnings per share in the full first year.
Commenting on the news, Paul Bulcke, Nestlé’s CEO, said: “Infant nutrition has been at the heart of our company since it was founded in 1866. Pfizer Nutrition is an excellent strategic fit and this acquisition underlines our commitment to be the world’s leading nutrition, health and wellness company.
“Its strong brands and product portfolio, its talented people dedicated to the success of its business, together with its geographic presence—85 per cent of its sales are in emerging markets—will complement our existing infant nutrition business perfectly. The combined entities will enable us to deepen our engagement with consumers, offering them a wider choice of nutritious food to ensure their children make a healthy start to a healthy life.”
The acquisition is subject to regulatory approval.
