Novartis chooses to delay divestment of Health Food & Slimming and Sports Nutrition

02-Dec-2002

Novartis announced today that it is delaying the divestment of its Health Food & Slimming and Sports Nutrition businesses (HF&S and SN) due to a lack of attractive offers. In the current economy, corporate decision making has become more conservative, with fewer new initiatives. As a result, bids for the HF&S and SN businesses have not been in line with the value of these assets. The divestment plan is part of Novartis' strategic decision to further focus the portfolio on healthcare, with pharmaceuticals as the core business. In October, Novartis successfully sold its Food & Beverage business, including the Ovaltine® brand, to Associated British Foods.

Paul Choffat, CEO of the Consumer Health Division, said, "We will pursue our strategy, but until now the offers have not matched the value of the brand portfolio. In the interim, we will optimize the business potential of the HF&S and SN businesses by reorganizing them into a stand-alone unit called Nutrition et Santé. This will ensure that we continue to build value with these assets."

Alain Chatillon, current head of the Health & Functional Foods business in France, will be CEO of "Nutrition et Santé", which will be headquartered in Revel, France. In 2001, the sales of the HF&S and SN businesses reached Euro 280 million (CHF 420 million). The main brands in the area of Health Food & Slimming comprise Céréal®, Gerblé®, Gerlinéa®, Modifast®, Dietisa®, Pesoforma®, Lecinova® and Milical®, while the Sports Nutrition brands include Isostar®, Powerplay® and Mineralplus®. Alain Chatillon said, "As a stand-alone and focused company with well-established pan-European brands and good market rankings, we will strengthen our position among consumers and key trade partners."

https://www.chemeurope.com/en/news/16329/novartis-chooses-to-delay-divestment-of-health-food-slimming-and-sports-nutrition.html