I absolutely love this deal for both companies as Pfizer is monetizing some of their faster growing assets which haven’t been reflected in the stock’s valuation, and Nestle is acquiring a company that fits into their core business model. I’d need to know more details about the division to provide more commentary on valuation but Nestle has been a solid steward of capital and their track record speaks for itself. Pfizer is really turning into a well run company and they are making all of the right decisions. It will be interesting if Novartis at some point looks at the success Abbott and Pfizer are having in spinning off and selling non-core assets, and decides that it too could benefit from doing so. I think Novartis is very attractive at these levels and Pfizer isn’t bad either.
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