This was a dream company for Nestle and the dream has finally become a reality for it. It has finally managed to get hold of Gerber which is a household name in U.S. for baby food. It is expected to cost $5 billion to Nestle. For the past decade Nestle had been eyeing Gerber in order to gain a foothold in the American market. Let me tell you that Nestle is the world’s largest producer of infant nutritional products but still it was finding it difficult to establish itself in U.S.
Even in the 90s it had tried to acquire Gerber but lost out to Sandoz which was later acquired by Novartis. Earlier Nestle had acquired the medical nutritional business of Novartis and now with the acquisition of Gerber it will enable the company to position itself in a stronger manner in the arena of health and nutrition. This sale will also let Novartis to focus on its core drug business. An announcement in this regard is expected to be made soon.
Via cnn
