Swiss food giant Nestle said today it has agreed to pay $11.85 billion to acquire infant food maker Pfizer Nutrition.
Pfizer Nutrition generates about 85% of its sales from emerging markets.
Pfizer Nutrition has operations in Askeaton in Co Limerick, with 600 people working there. Products from the plant include SMA, and Promil Progress.
A statement from Pfizer said that when the deal is complete, it is expected that all the workers in the nutrition business will be transferred to Nestle.
"Pfizer Nutrition is an excellent strategic fit and this acquisition underlines our commitment to be the world's leading nutrition, health and wellness company," Nestle chief executive Paul Bulcke said in a statement.
The group added that the takeover would "complement our existing infant nutrition business perfectly." Nestle estimates that Pfizer Nutrition's sales would reach about $2.4 billion in 2012.
Pfizer is one of Ireland's biggest employers with about 4,000 workers across eight locations in Cork, Dublin, Kildare and Limerick. Its nutrition plant in Askeaton was established in 1974 and employs 600 people.
The Askeaton site is a global exporter of infant formula to more than 65 countries across Europe, Middle East, Africa, Latin America, Asia and Australia and New Zealand. Over 70 different baby foods are made at Askeaton including brands such as SMA, S26, Promil Progress and Illuma.
Financial media have in the past weeks been speculating about an imminent acquisition by the Swiss group, which has significant funds after it sold eyecare giant Alcon to Novartis in 2010 for $51.6 billion.
