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Nestlé candidate acquisition of Danone Medical Nutrition
According to several sources, four candidates have come forward to take the medical division for sale by Danone and whose value could reach nearly € 3 billion. Among them: Nestlé.
Danone Medical Nutrition arouses envy. According to several sources, four candidates have emerged to resume division disposal by the French group and whose value could reach nearly € 3 billion. Starting with two competitors, Nestlé and German Fresenius, the world of dialysis, at the head of a network of 260 clinics. Are also mentioned a third industrial candidate, as well as investment fund Nordic EQT. According to Reuters, which announced in mid-February the sale of the medical division of Danone, U.S. pharmaceutical companies Abbott and Baxter were potential candidates.
The medical division of Danone is extremely profitable. She realized in 2013 a turnover of 1.34 billion euros, up 5.6%, and reached a operating margin of 18.16%. This is the second best group profitability after infant nutrition, and to bottled water and dairy products latter providing more than half of total revenues with sales of € 11.79 billions , an increase of 3.2%.
Danone intends to focus on dairy products and baby food business which requires investment. In addition, the group has suffered setbacks in China due to unfounded fears of Fonterra supplier of raw materials risk of botulism. This situation forced him to withdraw products from sale. Cost of operation: 370 million euros in sales and 300 million operating profit less.
Sharpen the image of group health concern
His side Nestlé continues to enhance its image concerned about the health group. The Swiss giant acquired in February 2013 Pamlab, a U.S. company specializing in medical nutrition, which sells products for patients with mild cognitive impairment, depression and neuropathy. It has also opened in Lausanne, an institute dedicated to research the study of non-communicable diseases (Alzheimer's disease, diabetes, etc..) And their relationship with food. The Swiss group hopes to develop foods that can prevent these diseases, slow transmission or perhaps even cure one day.
Nestlé already carried out in this sector "health science" a turnover of about 2 billion Swiss francs (1.6 billion euros) per year.The investment fund EQT is no stranger to the area medical. With 20 billion euros in assets under management, the key capital actor in Europe is particularly present in Atos Medical and BSN Medical. Contacted, Nestlé has made no comment.