Novartis Sells Food & Beverage Group, Delays HealthFood/Sports Sales

Novartis Sells Food & Beverage Group, Delays HealthFood/Sports Sales

BASEL, Switzerland--Novartis put its food andnutrition businesses on the sales block in early February 2002 to focus itsefforts on its pharmaceutical business. At that point, the company expected tocomplete the divesture within six to 12 months. Unfortunately, a slowing globaleconomy impeded part of the plan.

Novartis (www.novartis.com)announced in early December that it completed divestment of its Food &Beverage business to Associated British Foods PLC for US$275 million. The group,which includes the Ovaltine brand, generated sales of US$244 million in 2001. Atthe same time, Novartis announced it was delaying divesture of its Health Food& Slimming (HF&S) and Sports Nutrition businesses because of a lack ofattractive offers.

"We will pursue our strategy, but until now, the offershave not matched the value of the brand portfolio," said Paul Choffat,chief executive officer of the Consumer Health Division. The two businesses havebeen reorganized into a stand-alone unit called Nutrition & Health, whichwill be headquartered in Revel, France, and headed by Alain Chatillon, currenthead of the HF&S business. The main brands of the new Nutrition & Healthgroup include Modifast and Isostar.