Swiss food giant Nestle S A has agreed to acquire Pfizer Nutrition, the nutrition business of global drug major Pfizer Inc for about $11.85 billion, in a move that will enhance Nestle's position in emerging markets.

Nestle said the acquisition would be a strategic fit with its own complementary infant nutrition portfolio and strong presence in high-growth markets

Pfizer Nutrition is a high-quality, high-growth infant nutrition business with strong brands. The acquisition, which is subject to regulatory approval, will be accretive to the Nestlé model both for growth and margins as well as the group's earnings per share in the full first year.

Nestlé estimates the acquired business' 2012 sales at $2.4 billion. Eighty-five per cent of Pfizer Nutrition's sales are in emerging markets, many of them with large, fast-growing populations.

''Infant nutrition has been at the heart of our company since it was founded in 1866. Pfizer Nutrition is an excellent strategic fit and this acquisition underlines our commitment to be the world's leading nutrition, health and wellness company. Its strong brands and product portfolio, its talented people dedicated to the success of its business, together with its geographic presence – 85 per cent of its sales are in emerging markets - will complement our existing infant nutrition business perfectly. The combined entities will enable us to deepen our engagement with consumers, offering them a wider choice of nutritious food to ensure their children make a healthy start to a healthy life,'' Nestlé CEO Paul Bulcke said.

Nestle said the acquisition would enhance its own infant nutrition business, building on its growth-focused strategy, global presence and pioneering research and development.

The company hopes to combine well-known brands like S-26 Gold, SMA and Promil with its existing portfolio of successful brands such as Nan, Gerber, Lactogen, Nestogen and Cerelac infant cereal.

Both Nestle and Pfizer have significant presence in India. Nestle, which has completed 100 years in India, has seven manufacturing facilities in the country, with a nationwide customer base served through more than 3.5 million outlets. Its most popular brands include Maggi, the country's leader in instant noodles, and Nescafé instant coffee.

Today, the company directly employs 6,000 people in India and more than half a million indirectly.

Nestlé SA, the parent company of Nestle India is based in the Swiss town of Vevey. The company employs around 328 000 people and has factories or operations in almost every country in the world. Nestlé sales for 2011 were almost 83.7 billion Swiss francs ($91.4670 billion).

Pfizer, Inc is an American multinational pharmaceutical corporation founded in 1849. The company is headquartered in Midtown Manhattan, New York City, with its research headquarters in Groton, Connecticut, US. Pfizer, which produces some of the largest selling drugs like Lipitor (atorvastatin, used to lower blood cholesterol), the neuropathic pain/fibromyalgia drug Lyrica, is the world's largest pharmaceutical manufacturer.