- By Region
Nestlé has agreed to buy Pfizer’s Nutrition unit for $11.9bn, expanding its business selling infant formula in emerging markets.
The purchase will boost earnings per share in the first full year, the Swiss company said in a statement on Monday. About 85 per cent of the unit’s sales come from emerging markets, it added.
Paul Bulcke, chief executive of Nestlé, said: “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.”
The sale will be Pfizer’s largest divestiture since the $16.6bn sale of consumer health brands including Sudafed cold medicine and Bengay pain cream to Johnson & Johnson in 2006.
Pfizer’s nutrition unit has annual sales of about $2.1bn and has been growing about 8 per cent a year. It has a strong presence in China and other emerging markets such as Saudi Arabia, Mexico and the Philippines.
Pfizer’s business includes infant formulas such as SMA and Promil. The unit, which also makes Enercal supplements for adults, offers products in more than 60 countries.
Pfizer gained the formula division through its $68bn purchase of Wyeth in 2009.
more to follow…