Trade Resources Company News Aspen Pharmacare Plan to Acquire Nestlé's Infant Nutrition Businesses

Aspen Pharmacare Plan to Acquire Nestlé's Infant Nutrition Businesses

South Africa-based Aspen Pharmacare has agreed to acquire Nestlé’s infant nutrition businesses in Australia and South Africa for $215m, as part of its efforts to strengthen its presence in Australia, Latin America and sub-Saharan Africa.

The acquisition includes certain rights to intellectual property licenses, shares and net assets in the IN businesses - Australian IN business and Southern African IN business, which are currently operated by Pfizer.

Australian IN business distributes a portfolio of IN products in Australia, while the Southern African IN business distributes products to territories including South Africa, Botswana, Namibia, Lesotho, Swaziland and Zambia. The Australian and Southern African IN businesses posted revenues of AUD 83m ($85.5m) and ZAR180m ($19.6m) respectively in 2012.

The IN portfolio covers all age stages - infants, toddlers and early childhood and comprises premium, speciality and standard ranges supported by brands including S26 Gold, S26 and SMA.

Aspen has received approval from the Australian competition authorities for acquisition of the Australian business, while the approval for acquisition of the Southern African business is pending from the South African and Namibian competition authorities. The acquisition of Australian business will be effective in Australia from 28 April 2013.

Nestlé is divesting assets following its $11.9bn acquisition of Pfizer's infant nutrition business to comply with antitrust regulators.

Aspen chief executive officer Stephen Saad said these transactions support Aspen's stated ambitions to extend its infant nutritional business.

"We understand the potential of these products as we are familiar with the brands having marketed these in South Africa under license in the recent past," Saad added.

Following the acquisition, Aspen will have the exclusive right of use of the Nestlé's S26 and SMA IN product trademarks for a period of ten years in Australia and Southern Africa. It will also have the right to co-brand the licensed products over the initial ten year period and to transition these products to Aspen branded products over this period.

In addition, there will be a transfer of the ownership in the operating businesses from Nestlé to Aspen, which includes the transfer of the employees within those businesses and Aspen will be provided with transitional service arrangements by Nestlé and Pfizer including the manufacture and supply of licensed products under a non-exclusive arrangement.

Source: http://www.food-business-review.com/news/aspen-to-buy-nestls-infant-nutrition-businesses-in-south-africa-and-austrlia-190413
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Aspen to Buy Nestle's Infant Nutrition Businesses in South Africa and Austrlia