Nestlé has agreed to acquire Kraft Foods' frozen pizza business in the US and Canada for USD 3.7 billion in cash. The business includes brands such as DiGiorno, Tombstone, California Pizza Kitchen, Jack’s and Delissio. This frozen pizza business would provide "a new strategic pillar to Nestlé’s frozen food portfolio in the US and Canada, where a leadership in prepared dishes and hand-held product categories" has already been established, the company said in a release.

      About USD 28 billion (20 bn Euros) Nestlé can expect in the second half of the year from the sale of remaining shares in Alcon to pharmaceutical company Novartis, Nestlé announced on January 4. Only a day later Nestlé announced the acquisition of the American Pizza section of the competitor Kraft Foods. Thus the Swiss giant becomes the largest supplier if this kind of dish in the world. It was at that time when the chairman of the board Paul Bulcke clarified that he does not want to step into a takeover battle with Kraft tp acquire British sweet goods manufacturer Cadbury.

      "This frozen pizza business greatly enhances Nestlé's frozen food activities in North America, bringing together a selection of great US and Canadian brands, industry-leading R&D and excellent route-to-market capabilities, which complement our existing ice cream direct-store-delivery. With total sales of around CHF 3 billion, Nestlé will become the world leader in the attractive, fast-growing frozen pizza category," Paul Bulcke, CEO of Nestlé explained.

      The US is the largest pizza market in the world with consumer sales of about USD 37 billion. With estimated sales of USD 2.1 billion in 2009, Kraft Foods is the leader in the frozen pizza category and has enjoyed double-digit growth in the US and Canada over the last four years.