In a strategic move to enhance its position in global infant nutrition, Nestlé has agreed to acquire Pfizer Nutrition for USD 11.85 billion. The acquisition, which is subject to regulatory approval, will be accretive to the Nestlé model both for growth and margins as well as the group’s earnings per share in the full first year. Nestlé estimates the acquired business’ 2012 sales at USD 2.4 billion. Eighty five percent of Pfizer Nutrition’s sales are in emerging markets, many of them with large, fast-growing populations.

Infant nutrition is a high-value, science-led category. Pfizer Nutrition is a dynamic, high-quality infant nutrition business that complements Nestlé’s existing portfolio with strong brands in key segments and geographies. It will enhance our infant nutrition business, building on our growth-focused strategy, global presence and pioneering research and development. We will be able to 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 andCerelac infant cereal.

Paul Bulcke, Nestlé CEO: “Infant nutrition has been at theheart of our company since it was founded in 1866. Pfizer Nutrition is anexcellent strategic fit and this acquisition underlines our commitment to bethe world’s leading nutrition, health and wellness company. Its strong brandsand product portfolio, its talented people dedicated to the success of itsbusiness, together with its geographic presence - 85% of its sales are inemerging markets - will complement our existing infant nutrition businessperfectly. The combined entities will enable us to deepen our engagement withconsumers, offering them a wider choice of nutritious food to ensure theirchildren make a healthy start to a healthy life.”