Pfizer sells Nutrition business to Nestle for $11.85 billion

Swiss food giant Nestle has won the battle to acquire the Nutrition business of global drugs behemoth Pfizer (NYSE: PFE), beating potential buyers  France’s Danone and USA-based Mead Johnson Nutrition, with a $11.85 billion in cash offer. Pfizer had previously announced its intention to sell its Nutrition business, which recorded revenues of around $2.1 billion in 2011, an increase of 15% versus 2010.

"The price tag is high, however Nestle is securing a high growth/margin business with high exposure in the emerging markets. China will become the number 3 market for Nestle overall," said Vontobel analyst Jean-Philippe Bertschy quoted by Reuters.

“The transaction is a testament to the success of the Nutrition business, including its excellent reputation, talented colleagues, high-quality products and market reach,” said Amy Schulman, executive vice president, Pfizer general counsel; and president and general manager, Pfizer Nutrition. “The combination of Nestle and Pfizer’s Nutrition business, with its leading position in emerging markets, portfolio and science, will continue to serve the needs of formula-fed infants and their health care professionals and caregivers,” she added.