Nestle plans sale of $10bn skincare group to EQT
Nestle is in talks to sell its skincare business to a group led by private equity outfit EQT Partners for $10.1bn (£7.88bn) in what would be the second largest private equity-backed M&A deal on the Continent since the financial crisis, according to data from Refinitiv.
The business which was brought into the Swiss conglomerate in 2014 has annual revenues of $2.7bn and employs around 5,000 people worldwide.
EQT will be joined at the negotiating table by Luxinva, part of Abu Dhabi’s sovereign wealth fund, and Canada’s Public Sector Pension Investment Board.
The consortium plans to expand the skincare brands in the US, launch new products and keep growing the consumer health unit internationally.
“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 EQT’s Michael Bauer.
“The heritage of the company as a focused skincare company with a comprehensive product portfolio, exceptionally strong brands and high customer loyalty is unique,” he added.
Chief Executive Officer Mark Schneider is dismantling the skincare business, claiming it doesn’t fit his strategy as it was acquired by his predecessor.
Schneider has instead been focusing on products such as coffee, water and pet food as Nestle works to spur sales and revamp growth.