Tags: Nestle | Prometheus | Health | Science | food | pharma

Nestle Buys Prometheus Laboratories to Expand in Health Science

Tuesday, 24 May 2011 07:15 AM

Nestle SA said its health-science unit agreed to buy Prometheus Laboratories Inc., as the world’s largest food company invests to build up its personalized nutrition business.

Nestle may have paid between 500 million Swiss francs ($567 million) and 1 billion Swiss francs in the deal, Jean-Philippe Bertschy, a Zurich-based analyst at Bank Vontobel, wrote in a note today. The acquisition is “a decisive step for Nestle,” he said.

Prometheus, a San Diego-based company that specializes in diagnostics and licensed medicines for cancer and gastrointestinal illnesses, and Nestle didn’t disclose pricing in statements announcing the deal today.

Nestle has said it aims to become world leader in health-science nutrition in 10 years, extending its dominance beyond coffee, powdered milk and baby food. The Swiss maker of KitKat chocolate bars says Nestle Health Science products can help treat or prevent conditions such as high blood pressure and obesity.

Today’s deal is a “strategic move into gastrointestinal diagnostics,” Luis Cantarell, chief executive officer of the Nestle health unit, said in the statement. Prometheus has an “outstanding sales force,” he said.

Prometheus is forecast to have sales of about $250 million next year, Nestle said in its statement. Goldman Sachs Group Inc. advised Prometheus on the deal.


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Nestle SA said its health-science unit agreed to buy Prometheus Laboratories Inc., as the world s largest food company invests to build up its personalized nutrition business.Nestle may have paid between 500 million Swiss francs ($567 million) and 1 billion Swiss francs in...
Nestle,Prometheus,Health,Science,food,pharma
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2011-15-24
 

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