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Monthly Archives: April 2012

Nestle Stirs Up Baby Formula Market with Pfizer Deal

Nestlé’s (NASDAQOTH: NSRGY) announcement of its acquisition of Pfizer’s (NYSE: PFE) infant nutrition business for $11.9 billion Monday will solidify the Swiss-food giant’s position as the world’s largest provider of baby milk products.

News of Nestle’s nestled-deal sent shares up 1 percent.

The deal for Pfizer’s SMA, Promil and S-26 Gold baby-milk formulas, the biggest to-date for the Nestle Group, was beat out by Danone (NASDAQOTH: DANOY.PK) and Mead Johnson (NYSE: MJN).  With Pfizer wanting to concentrate more of its business on its pharmaceutical operations, Nestle agreed to pay 19.8 times what analysts estimated for the unit’s expected pretax 2012 earnings; 85% of the nutrition unit’s revenue comes from emerging markets with about a quarter of its sales from China.  This will bring Nestlé’s market share to first place in Asia and up from eighth place in China to second, information according to a New York Times report and other sources. (more…)

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Liz Claiborne of Yore Reduced to Rubble on Fifth & Pacific

From the signature suit jacket and “little black dress” of CoCo Chanel, to the first pair of designer jeans of Gloria Vanderbilt, and to the sensibly chic coordinated separates of Liz Claiborne, the business of fashion transformed our daily routine thanks to these iconic women who revolutionized the apparel industry by bringing Main Street fashion to households everywhere; leaving an indelible impression and cementing their names in history for generations to come.

Contrary to this fact, the announcement from Liz Claiborne’s CEO Bill McComb that the company’s soon-to-be name change to Fifth & Pacific Cos., which takes effect in May, suggests a name is just that… a name – nothing more, nothing less; leaving the notion that a name by any other name is not always a rose.  To make matters worse, the $1.3 billion international conglomerate is looking more and more attractive as a takeover target and investors are eagerly anticipating by driving shares up 13%, on March 30, the biggest gain in four weeks after the buyout buzz was released.  Private equity firms such as KKR & Co., Permira, Warburg Pinus LLC, VF Corp., and Warnaco Group have all been reported to show interest in a possible buyout at $20 a share; LIZ currently trades at around $13.00.

LIZ has released statements refuting talks of going private. (more…)