Nestle in advanced talks to sell $10bn skin business unit
Nestle is reportedly in an advanced talks to sell its skin health business to private equity firm EQT, a unit of the Abu Dhabi Investment Authority and PSP Investments for $10.12 billion.
This development comes at the back of a market survey which indicates that the food group will benefit when its shifts its portfolio in response to changing consumer demands.
The proposed transaction with is expected to close in the second half of 2019 pending regulatory approval, Nestle said on Thursday.
Nestle Chief Executive Mark Schneider put the skin health unit up for sale last September as the group moved to ditch underperforming businesses, following years of slowing growth as many consumers favored fresh foods over packaged goods.
“EQT focuses on quality businesses. We have a lot of good ideas how to develop Nestle Skin Health into a pearl and then make our return,” EQT partner and co-head of private equity Marcus Brennecke told Reuters.
“We will strengthen Galderma’s board with relevant industrial expertise to develop each of the three business units to their full potential. A couple of prescription drugs are theoretical blockbusters with large business opportunities,” he said.
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