Nestle To Buy Gerber Company For $5.5 Billion

The big business of baby food is about to get even bigger.  Talk about obesity………..

 

Nestle SA, the world's largest food company, will purchase baby-food company Gerber for $5.5 billion in a cash-only transaction.

As a result of the deal, Zurich-based Nestle will become the world's largest baby-food manufacturer. Nestle's nutrition division, of which Gerber will become a part, includes infant formula and baby food. With the addition of Gerber, the division is expected to see annual sales of about $8.2 billion, CNN reports.

Novartis SA, the world's fourth-largest pharmaceuticals company, currently owns Gerber. Nestle also recently purchased Novartis's medical nutrition business for $2.5 billion.

Nestle has been trying to buy Gerber for more than a decade.  The purchase will be complete by the second half of 2007.