Swiss food giant Nestlé will acquire the nutrition division of pharmaceutical multinational Pfizer for USD 11.85 billion in a deal announced today (April 23 ) by the two companies. Nestlé describes Pfizer Nutrition as “a high-quality, high-growth infant nutrition business with strong brands, value-creating and accretive to the Nestlé model.” The move fits in with Nestlé's strategy for baby food, and follows similar acquisitions aimed at increasing the company's market share.

Nestlé is targeting high growth markets, particularly China's, with the Pfizer deal. Pfizer has strong presence in China's infant food market, with around a 7 percent market share. “[Pfizer Nutrion's] geographic presence - 85 percent of its sales are in emerging markets - will complement our existing infant nutrition business perfectly,” said Nestlé CEO Paul Bulcke (in picture).

The deal is subject to regulatory approval, and, if all goes well, Nestlé expects USD 2.4 billion in sales from the newly acquired company in 2012. Last year Pfizer Nutrition recorded revenues of around USD 2.1 billion, a 15 percent increase on 2010. Pfizer CEO Ian Read suggests that the revenue from the sale will be used to repurchase shares or invest in new business opportunities.

Nestlé was founded in 1905 in Vevey Switzerland with the merger of two companies. Still headquartered in Vevey, it is now one of the world's largest corporations and, operating in 86 countries and employing well over 300,000 people worldwide.

American company Pfizer is one of the 'big pharma' global pharmaceutical companies. It was founded in 1849 and its headquarters are currently in New York, USA.

Liam Lever, liam@romania-insider.com