Pfizer Dumps Baby Food On Nestle

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Pfizer (NYSE: PFE) wanted out of the baby nutrition business and found a ready buyer for the division that owns its operations in that industry. There has been a rumor that Nestle has wanted the business. That makes sense. Pfizer is not in the food sector. Nestle  is.

Pfizer got $11.85 billion in cash. That is very expensive, and may be hard for Nestle to justify over time. Pfizer’s Nutrition business recorded revenues of approximately $2.1 billion in 2011, an increase of 15% versus 2010. The operation is global, and may be helped by Nestle’s operations, which are in more 100 countries. Pfizer said

Pfizer Nutrition is a leading global pediatric nutrition company with a strong portfolio of brands encompassing everyday and specialty infant and toddler formulas, follow-on formulas, as well as maternal and adult nutrition products. Pfizer Nutrition has colleagues in approximately 60 countries around the world and sales, product development, manufacturing, and business centers in the United States, Latin America, Europe, Middle East, Africa and Asia.

Still, the deal is over five times revenue