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DewDiligence

04/18/12 8:57 AM

#4725 RE: wow_happens28 #4724

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.
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DewDiligence

04/23/12 10:38 AM

#4778 RE: wow_happens28 #4724

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.