Nestle to Acquire Pfizer Nutrition for $11.85 Billion
In a strategic move to enhance its position in global infant nutrition, Nestl has agreed to acquire Pfizer Nutrition for $11.85 billion. The acquisition, which is subject to regulatory approval, will be accretive to the Nestl model both for growth and margins as well as the group’s earnings per share in the full first year. Nestl estimates the acquired business’ 2012 sales at $2.4 billion. Eighty five percent of Pfizer Nutrition’s sales are in emerging markets, many of them with large, fast-growing populations.
Paul Bulcke, Nestl CEO says, “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 percent 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.”
Infant nutrition is a high-value, science-led category. Pfizer Nutrition is a dynamic, high-quality infant nutrition business that complements Nestl’s existing portfolio with strong brands in key segments and geographies. It will enhance the company's infant nutrition business, building on its growth-focused strategy, global presence and pioneering research and development. The transaction will 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.
Paul Bulcke, Nestl CEO says, “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 percent 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.”
Infant nutrition is a high-value, science-led category. Pfizer Nutrition is a dynamic, high-quality infant nutrition business that complements Nestl’s existing portfolio with strong brands in key segments and geographies. It will enhance the company's infant nutrition business, building on its growth-focused strategy, global presence and pioneering research and development. The transaction will 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.