Nestlé buys Novartis Nutritionals
Swiss food giant Nestlé this week announced it would buy the medical-nutritional division of Swiss drugmaker Novartis in a $2.5 billion deal.
The move is part of Novartis's continuing strategy of concentrating of pharmaceuticals. In recent years, it has sold off its agricultural chemicals group, some of its over-the-counter medicines, its standard food and beverage products, even as it has expanded in generic drugs and vaccines. It also supports Nestlé's strategy of strengthening its position in the health food industry. Nestlé is, like other food companies, betting on an increasing worldwide concern with enhanced nutrition products, as traditional food segments have reached maturity.
Novartis has been second in the medical nutritional food area after Johnson & Johnson. Its products are include products for tube feeding, liquid nutritional supplements (shakes), and products for patients with fiber deficiency, gastrointestinal disorders, and diabetes, for example. Novartis still own the Gerber baby food product line, not part of the Nestlé deal. (It is assumed that Novartis will sell off the brand separately.)
Nestlé also recently bought US weight management food company Jenny Craig for $600, and Australian firm Uncle Toby's, a maker of nutritional cereals and snacks, for $670 million. It also makes baby formula, and owns the PowerBar and Lean Cuisine brands, as wellas the Nutrens medical nutrition products.
10:04:05 PM 
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