Nestle buys baby food biz off Novartis
Swiss food giant Nestle is buying the Gerber baby food business off pharma major Novartis for $5.5 bn.
By Agencies |
PARIS: Swiss food giant Nestle is buying the Gerber baby food business off pharmaceuticals major Novartis for 5.5 billion dollars in cash, Novartis announced Thursday in a communique.
"This completes Novartis' divestiture program following its strategy to focus on healthcare with pharmaceuticals at the core," the company said, adding that the transaction was expected to be completed by the second half of 2007.
"Over the past decade we have continuously invested in R&D, strengthening our innovation power and building our healthcare businesses, particularly pharmaceuticals, while divesting over 50 per cent of our non-core, non-healthcare businesses," Novartis chairman and CEO Daniel Vasella said.
He emphasised that the transaction was also "the right move for Gerber, as it will become a priority business in a leading global nutrition company." Nestle has reportedly been keen to acquire Gerber for more than 10 years. It made an offer for the group back in 1994, but was thwarted by Sandoz, which went on to merge with Ciba-Geigy, which gave birth to Novartis.
Gerber, based in Parsipanny, New Jersey in the United States, has a portfolio of around 300 food products for babies, toddlers and infants as well as a line in baby-care and life insurance.
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In 2006 Gerber had unaudited net sales of $1.6 billion with an operating income of 307 million, the statement said.Download
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