Gerber, a household name in the U.S., is growing at an annual rate of 8.5% and will generate an estimated $1.95 billion in sales in 2007, Nestle said. It added that the transaction will start improving its operating profit margin immediately and give its growing nutrition business, which includes infant formula, baby food, medical nutrition and weight management, annual sales of 10 billion Swiss francs ($8.2 billion).
According to data from market research firm Euromonitor, Gerber had a 75% share of the U.S. prepared baby-food market in 2005.