Replies to post #4724 on The Rising Influence of Rising Affluence

[DewDiligence]

Inasmuch as PFE's infant-nutrition business logged $2.1B of sales in 2011, Nestlé is valuing the business at about 4.5x sales, which is high but not excessively so, IMO.

[DewDiligence]

Nestlé ended up paying $11.85B*—a whopping 6x 2011 sales—for PFE’s infant-nutrition business, which derives 80% of its sales in emerging markets:

http://finance.yahoo.com/news/nestle-buy-pfizer-nutrition-11-052407033.html

Clearly, the sky-high multiple of sales Nestlé is paying is a strong statement by Nestlé on the power of The Global Demographic Tailwind.

*The early leaked reports cited a $9B deal price.