Nestle to buy Pfizer's infant nutrition biz for $11.85 bn
Zurich/New Delhi: Nestle on Monday said it has agreed to acquire Pfizer Inc' infant nutrition business for USD 11.85 billion, a move that will enhance Swiss food giant's position in emerging markets.
Both the companies have significant presence in India.
"In a strategic move to enhance its position in global infant nutrition, Nestle has agreed to acquire Pfizer Nutrition for USD 11.85 billion," Nestle said in a statement.
Pfizer Nutrition generates 85 per cent of its sales from emerging markets, many of them with large, fast-growing populations.
"Pfizer Nutrition is an excellent strategic fit and this acquisition underlines our commitment to be the world's leading nutrition, health and wellness company," Nestle CEO Paul Bulcke said in a statement.
"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," he added.
The Switzerland-based firm said that transaction is subject to regulatory approval.
Nestle estimates that Pfizer Nutrition's sales would reach about USD 2.4 billion in 2012.
"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," Nestle said.
Nestle, which has completed 100 years in India, has 7 manufacturing facilities in the country, where its products are sold in more than 3.5 million outlets.