Nestle to acquire Pfizer’s nutrition business

Nestle has agreed a deal to acquire Pfizer's nutrition business unit for $11.85 billion (7.36 billion pounds).

The takeover will allow Nestle to strengthen its position in the global infant nutrition category, providing it with access to well-known brands such as S-26 Gold, SMA and Promil, which complement Nestle offerings like Lactogen, Nestogen and Cerelac.

Pfizer Nutrition's estimated 2012 sales total comes to around $2.4 billion, with 85 percent of this revenue coming from emerging markets, many of which are characterised by large, fast-growing populations.

It operates in around 60 countries, with centres spread across the US, Latin America, Europe, the Middle East, Africa and Asia.

Paul Bulcke, Nestle's chief executive officer, said: "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."

Meanwhile, Pfizer chief Ian Read explained that proceeds from this sale will be reinvested into other business opportunities elsewhere.