Nestlé announced Thursday that it will acquire baby food brand Gerber from Novartis for $5.5 billion, making Nestlé the largest single baby food market.
For 2007, Gerber had net proceeds of sales of approximately $1.95 billion.
In addition to being a highly-recognizable brand in the U.S., it also holds a strong market position in Mexico, Poland and Central America.
“The acquisition of Gerber is the perfect complementary fit,” said Peter Brabeck-Letmathe, Chairman and CEO of Nestlé. “It not only gives Nestlé the leadership position in baby food, but it also constitutes a decisive step to establish Nestlé Nutrition as the undisputed global leader in the nutrition field, with annual sales of around $8.19 billion, covering all important sectors: infant formula, baby food, medical nutrition, weight management and performance nutrition. This is a major step in the transformational journey of Nestlé toward a Nutrition, Health and Wellness Company.”
The transaction is expected to be completed during the second half of 2007.