Swiss food company Nestlé has completed the acquisition of Pfizer Nutrition, the nutrition business of Pfizer, for $11.85bn, following the completion of the regulatory approval process in several markets.The integration process of Pfizer Nutrition into Nestlé Nutrition, which will result in 4,500 employees of Pfizer Nutrition joining Nestlé, is currently ongoing.
Nestlé noted that Pfizer Nutrition's leading brands, product portfolio and its wide geographic presence will complement its infant nutrition business, while expanding its product offerings.
In Australia, Nestlé's divesture commitments have satisfied the regulators - the company has agreed to sell an exclusive ten-year licence for Pfizer Nutrition's S-26/SMA brand portfolio to an independent purchaser.
In addition, following the end of the license period, Nestlé has agreed not to re-enter the Australian market with Pfizer's brands for another ten years.
Nestlé said that the regulatory approval process is underway in South Africa, Kenya and five Latin American countries, where it is continuing to evaluate its strategic options.
Pfizer Nutrition, which became part of Pfizer following its acquisition of Wyeth in 2009, sells baby formula and maternal supplements and owns formula brands such as SMA Gold, S-26 Gold and Promil Gold.
It generates 85% of its sales from emerging markets and has revenues of $2.1bn with an annual growth rate of 8%.
Pfizer had put the nutrition business up for sale as part of its strategy to focus on drug development, after losing patent protection for cholesterol drug Lipitor, which affected its net income.
Nestlé beat out companies such as Groupe Danone and Mead Johnson to seal the agreement in April 2012.
