Nestlé enters £8bn talks to sell Skin Health unit

The Swiss consumer goods firm owns skin care brands including Proactiv and Benzac

Image via @proactiv_uk and @benzac_benzacare

Consumer goods company Nestlé has entered exclusive negotiations to sell its Nestlé Skin Health for CHR10.2bn (£7.9bn).

The talks with an EQT-led consortium and a subsidiary of the Abu Dhabi Investment Authority (ADIA) were confirmed by the Swiss company on Wednesday.

Founded in 1981, the unit joined Nestlé in 2004. It made sales of CHR2.8bn (£2.1bn) in 2018 and owns brands including Benzac and Proactiv.

“We are impressed by Nestlé Skin Health’s management team and its achievement in positioning the company as a leading player across its three business units,” said Michael Bauer, EQT’s Global Head of Healthcare.

“The heritage of the company as a focused skin care company with a comprehensive product portfolio, exceptionally strong brands and high customer loyalty is unique.”

He added that this investment would act as an opportunity to drive growth and make “strong companies even stronger”.

Hamad Shahwan Al Dhaheri, ADIA’s Executive Director of its Private Equities Department, also said the transaction aligns with its “strategic investments” approach.

The transaction is subject to regulatory approval and employee consultations, but is set to close in the second half of 2019.

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

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