ZurichSwiss food company Nestle has found a buyer for its skincare business. The world leader in Vevey on Lake Geneva negotiates with a consortium to the financial investor EQT and the Abu Dhabi Investment Authority (ADIA) exclusively on the sale of the area. The selling price amounts to 10.2 billion francs (nine billion euros), said Nestle on Thursday.
The transaction is expected to be completed in the second half of the year after consultation with the employees and approval by the authorities. Nestle intends to provide information on the proceeds of the sale and the future capital structure in the second half of the year.
The division called Skin Health, which sells prescription drugs and esthetic dermatology products from the Galderma market and care products such as Cetaphil, achieved sales of CHF 2.8 billion last year with more than 5,000 employees. Nestle had the area in September for disposition. Insiders had expected offers from other financial investors besides EQT, such as Advent and Cinven, Partners Group, Blackstone, CVC, KKR and Carlyle.
Nestle CEO Mark Schneider plans to drive growth through acquisitions in promising areas, returning to earlier growth rates of around five percent by 2020. The Swiss had not managed that last. In the wake of the slump, Schneider tackled a conversion, which included the sale of the US candy business and the separation of Skin Health.
Nestlé (t) Skin Care (t) EQT (t) Food (m) Mergers & Acquisitions M & A (t) Abu Dhabi Investment Authority (t) KKR (t) Galderma (t) Cinven Group (t) Partners Group (t) Blackstone Group (t) Mark Schneider (t) Food Industry (t) Functional Food