NESTLE S.A. last week completed the acquisition of the infant nutrition business of Pfizer Inc. for $11.85 billion, clearing the way for Pfizer to concentrate on the planned spin-off of its animal health business in the first half of next year.
Nestle noted that Pfizer Nutrition has strong brands and is present around the world, especially in emerging markets with large, rapidly growing populations. Nestle said the acquisition allows it to build on its global presence and growth-focused strategies.
Pfizer announced intentions to sell or spin off the animal health and nutrition businesses last year to better focus on its core interests in human medicines and to maximize shareholder value (Feedstuffs, March 21, 2011). It subsequently decided to sell the nutrition business and to sell 20% of the animal health business in an initial public offering (Feedstuffs, April 30 and June 18).
Pfizer Animal Health, the largest animal health company in the world, with sales totaling $4.184 billion, will be spun off as Zoetis, formed from the word "zoetic," which means "pertaining to life."