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Nestlé in talks to sell skin health unit to EQT, ADIA
Posted on Thursday, 16 May 2019 13:07
Swiss food and drink giant Nestle has entered exclusive negotiations over a potential divestment of its skin health division to a consortium led by private equity investors EQT and ADIA.

Under the terms of the proposed transaction, the acquiror will pay CHF 10.20 billion (EUR 9.03 billion) for the business.

Completion is subject to employee consultations, as well as the green light from regulatory authorities, and is slated to follow during the second half of 2019.

As yet, Nestlé has not disclosed how it plans to utilise the proceeds of the sale and intends to provide a further update at a later date.

Nestlé Skin Health is headquartered in Lausanne and employs in excess of 5,000 people across 40 countries.

The firm operates through three business units: prescription, aesthetics and consumer care.

A sale of the unit has been on the cards since September 2018, when its parent said it was exploring options following a strategic review which concluded that it might be better off under a different owner.

Since then, a number of potential acquirors have been named in connection with bids for the division, including PAI Partners, TPG Capital Advisors, Colgate-Palmolive and Unilever.

According to Zephyr, the M&A database published by Bureau van Dijk, Nestle’s most recent sale was announced in September 2018, when it divested a 50.0 per cent stake in Nestle Indofood Citarasa Indonesia to Indofood CBP Sukses Makmur for IDR 314.00 billion (USD 21.74 million).

As a consequence of that acquisition, the buyer’s share of the business increased to 99.9 per cent.

Zephyr shows the largest deal targeting a pharmaceutical preparation manufacturer to have been announced since the start of this year was worth USD 74.00 billion and involved Bristol-Myers Squibb agreeing to pick up US biopharmaceuticals maker Celgene.

This was considerably larger than the second-placed deal as Novartis agreed to acquire the Xiidra assets of Takeda Pharmaceutical for USD 5.30 billion.

© Zephus Ltd