PFIZER, THE US pharmaceutical giant which employs about 4,000 people in Ireland, has sold its infant formula business to Nestlé in a deal worth $11.85 billion (€9 billion).

The deal will see the ownership of Pfizer’s infant formula plant in Askeaton, Co Limerick, which employs 600 people, transfer to the Swiss food giant.

A spokeswoman for Pfizer Ireland said all staff would be transferred to Nestlé, subject to union consultation where required.

The Askeaton plant is one of five infant formula plants operated by Pfizer – the others are in Mexico, the Philippines, China and Singapore. The Limerick facility is the only plant that produces certain products for Pfizer, including ready-to-feed liquid products and speciality products for specific nutrition needs.

Pfizer acquired the Askeaton Plant when it bought Wyeth in 2009.

The facility originally opened on a greenfield site in 1974 and expanded rapidly over decades. The 43-acre site can produce more than 48,000 tonnes of powder infant formula a year. It manufactures and exports infant formula products, including SMA, Progress and Illuma, to almost 70 countries, with about three-quarters going to markets outside the EU.

It is also a significant buyer of lactose and skim milk powder from Irish dairy farmers.

A spokesman for Nestlé, which is headquartered in Switzerland, told The Irish Times the acquisition is “a strong growth story; it is not about downsizing”.

However, analysts expect that Nestlé will be required by regulators to sell some of its businesses in some countries due to competition issues.

Nestlé, the world’s largest food company, staved off competition from Danone to purchase Pfizer Nutritionals at a price at the upper end of expectations.

The infant formula business was put up for sale by Pfizer about nine months ago as the drug company tries to concentrate on its core pharmaceuticals business as it compensates for the loss of revenues from cholesterol drug Lipitor, which lost patent protection last year.

While Nestlé is the world’s biggest infant formula producer, it has been losing market share in the lucrative Chinese market. About 85 per cent of Pfizer’s infant formula sales come from emerging markets such as Asia, Africa and the Middle East.

Pfizer’s nutrition business recorded revenues of $2.1 billion (€1.6 billion) in 2011, a 15 per cent jump on 2010.