It looks like Nestle (OTCPK:NSRGY) is paying a healthy 19.8 times 2012 EBITDA for Pfizer's (PFE) nutrition business. That is a pretty high multiple but Nestle is betting on cost synergies, and high growth prospects from the emerging markets that the business operates in. Nestle has and also produces a lot of cash so this seems like a decent use of it, so I think the deal makes sense for both companies. Pfizer was very lucky to have two really strong bids from both Nestle and Danone to ensure that they got a fair price.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.