Pfizer, New York, NY, has completed the sale of its Nutrition business to Nestlé for $11.85 billion in cash, following the conclusion of the required regulatory process in most markets.
In certain countries where completion will be delayed due to ongoing regulatory review, Pfizer will continue to operate the business on an interim basis. Meanwhile, the integration process, which that will see about 4,500 Pfizer Nutrition employees join the Nestlé Group, is underway.
Pfizer Nutrition’s brands and product portfolio, together with its geographic presence, complements Nestlé’s Infant Nutrition business, Nestle said. About 85% of Pfizer Nutrition sales are in emerging markets, many of them with large, fast-growing populations. Building on Nestle’s growth-focused strategy, global presence and pioneering research and development, the newly enlarged business will enhance the company’s ability to offer a wider choice of nutritious food to ensure children make a healthy start to a healthy life.
In Australia, Nestlé’s remedy commitments, which are not material in the overall context of the transaction, have satisfied regulators. The regulatory approval process is still underway in Kenya, South Africa and five Latin American countries. Neslte continues to review its strategic options in those countries.
“The completion of the sale of the Nutrition business to Nestlé demonstrates our commitment to maximizing the value of our businesses and prudently managing capital,” said Frank D’Amelio, Pfizer CFO. “We remain focused on enhancing shareholder value, and our new $10 billion share repurchase program is now effective upon the completion of the sale and will be utilized over time.”