Nestle Completes Disposal of Alcon
Nestle has completed the sale of its remaining 52% stake in Alcon, the global eye care business, to Novartis for $28.3b.
Nestle acquired Alcon in 1977 for $280m. Over the years, Nestle supported Alcon’s R&D drive and international expansion, enabling the company to build a significant global leadership position in ophthalmology.
Paul Bulcke, chief executive of Nestle.
Taking into account the three steps of the gradual divestment of Alcon – the initial IPO of 23.25% in 2002, the sale of 24.8% in 2008 and the sale of Nestle’s remaining Alcon shares to Novartis – Nestle has realised $41b.
As an immediate result, Nestle will substantially reduce its net debt position, which stood at SFr29.6b ($28.7b, Eur22.6b) at the end of June 2010. Nestle will continue to seek opportunities to accelerate its development in core areas and, through responsible capital management, maintain its AA rating – the gold standard credit quality in the industry – while providing a competitive return to its shareholders.
“This divestment of our interest in Alcon will enable our management to concentrate on accelerating Nestle’s transformation as the world’s leading nutrition, health and wellness company,” remarks Paul Bulcke, chief executive of Nestle.
