FDBusiness.com

In a strategic move to enhance its position in global infant nutrition, Nestle has agreed to acquire Pfizer Nutrition for $11.85 billion (Eur9.01 billion). Nestle estimates Pfizer Nutrition’s 2012 sales at $2.4 billion, with 85% generated in emerging markets, many of them with large, fast-growing populations. The acquisition is subject to regulatory approval.

Infant nutrition is a high-value, science-led category. Pfizer Nutrition complements Nestle’s existing portfolio with strong brands in key segments and geographies. It will enhance Nestle’s infant nutrition business allowing it to combine well-known brands like S-26 Gold, SMA and Promil with the existing portfolio of trusted and successful brands such as Nan, Gerber, Lactogen, Nestogen and Cerelac infant cereal.

Paul Bulcke, chief executive of Nestle comments: “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% 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.”