Mumbai, December 07: FMCG firm Nestle on Monday said its board of directors has approved the proposal to acquire the nutrition business of Speciality Foods India and the deal would be effective from January 1, 2010.
“The Board of Directors at its meeting held on December 7, 2009, inter alia, has accepted the proposal of Speciality Foods India Pvt Ltd for acquisition of its healthcare Nutrition Business,” Nestle India said in a filing to the Bombay Stock Exchange.
The company did not mention the size of the deal, but said the price approved by the board is being conveyed to Speciality Foods.
“Subject to the agreement between the parties on the sale price and the terms, the sale of nutrition business to Nestle India is proposed to be effective from January 1, 2010,” it said.
Speciality Foods India is a subsidiary of Nestle S.A. in India. The healthcare nutrition business of the company, which sells brands like Resource, Optifast and Spert, had a revenue of Rs 28.8 crore last fiscal.
“Acquisition of the healthcare nutrition business is aligned with and will further reinforce the leadership of Nestle India in nutrition, health and wellness,” Nestle said.
–PTI