Nestlé in ‘exclusive negotiations’ with EQT consortium over sale of Skin Health unit

Nestlé in ‘exclusive negotiations’ with EQT consortium over sale of Skin Health unit

Nestlé is set to enter into exclusive negotiations with an investment consortium regarding the sale of its Skin Health unit, in what is thought to be a €9 billion deal.

The consortium is led by private equity group EGT and Luxinva, the wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), with the deal expected to close in the second half of 2019 subject to regulatory approval.

The group is said to be negotiating for the sale of the Skin Health division in order to support it in it’s ‘next period of growth by leveraging EGT’s strong healthcare expertise, local angles and industrial network’.

The exclusive talks with the private equity consortium put paid to interest by the likes of Colgate-Palmolive and Unilever and follows Nestle’s decision last year to ‘sharpen its focus’ on food, beverage and nutritional health products.

According to a press release by EGT, the consortium growth strategy will “build on the current direction taken by NSH’s management and focuses on accelerating growth further by building on the company’s strong market position and brands.
“Priorities will be 1) to invest in commercial excellence and drive innovation in collaboration with health care professionals in the Aesthetics unit; 2) to continue investments in R&D and business development to strengthen the Prescription division and leverage its best-in-class commercial platform; 3) to increase presence in the US, launch new products and focus on international expansion in the consumer health business. The company will keep its headquarters in Switzerland and will be rebranded as Galderma