Nestle to buy Pfizer’s infant-nutrition business
GENEVA – Swiss food and drink giant Nestle SA announced a deal Monday to acquire Pfizer Inc.’s infant-nutrition business for $11.85 billion in a bid to boost sales in emerging markets.
The Vevey, Switzerland-based company said the acquisition would “enhance its position in global infant nutrition” because 85 of the Pfizer Nutrition unit’s sales are in emerging markets, many of which have large, fast-growing populations.
The deal would particularly help Nestle to boost growth in China and maintain its position as one of the world’s largest sellers of infant formula. It is subject to regulatory approval, however, and Nestle, since it already sells so much infant formula, may face some antitrust hurdles to complete the deal.
The maker of Nescafe, Haagen Dazs and Jenny Craig said it estimated that the Pfizer unit’s 2012 sales would bring $2.4 billion.
“Infant nutrition has been at the heart of our company since it was founded in 1866,” Nestle CEO Paul Bulcke said in a statement. “Pfizer Nutrition is an excellent strategic fit and this acquisition underlines our commitment to be the world’s leading nutrition, health and wellness company.”
Groupe Danone and Mead Johnson Nutrition Co. had jointly bid to acquire the infant-nutrition business, which Pfizer had put up for sale last July along with a separate animal-health business unit.
Pfizer, the world’s largest drug maker, has been shedding its noncore businesses as it moves to focus on develop new prescription drugs. Last year it suffered the patent expiry of blockbuster drug Lipitor, the cholesterol fighter.
It also sold its business unit that makes drugs in capsule forms to KKR & Co. last August for $2.4 billion.
Nestle forecast Friday that 2012 will be a challenging year but reported that first-quarter sales rose a healthy 5.6 percent from a year earlier, fueled by strong growth in emerging markets and higher retail prices.
Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of INQUIRER.net. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City,Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94