Novartis Sells Gerber for $5.5 Billion

Novartis has agreed to sell its Gerber baby food business to Nestle for $5.5 billion in cash, completing the company’s divestiture program and allowing it to focus on healthcare with pharmaceuticals at the core. The sale is expected to close by the second half of 2007.

“Over the past decade we have continuously invested in R&D, strengthening our innovation power and building our healthcare businesses, particularly pharmaceuticals, while divesting over 50% of our non-core, non-healthcare businesses,” said Dr. Daniel Vasella, chairman and chief executive officer of Novartis. “This transaction is also the right move for Gerber, as it will become a priority business in a leading global nutrition company.”

In other news, Novartis has appointed Joseph Jimenez as chief executive officer of its Consumer Health division. He replaces Paul Choffat, who is retiring at the end of April after leading the division for many years. Mr. Jimenez previously worked at The Blackstone Group, and has also served as president and chief executive officer of the H.J. Heinz Company in Europe and the U.S.