VEVEY — Nestle plans to acquire Pfizer Nutrition for $11.85 billion with the goal of growing its infant nutrition business.
“Infant nutrition has been at the heart of our company since it was founded in 1866,” said Paul Bulcke, chief executive officer. “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.”
Pfizer’s Nutrition business recorded sales of $2.1 billion during fiscal 2011, a 15% increase over 2010, according to the company. Nestle estimates the business will have sales of $2.4 billion during fiscal 2012.
The acquisition is subject to regulatory approval and will be accretive to Nestle in the full first year.