Nestlé In Talks To Sell Skin Health Business, Including Rx, for $10.2 Billion

By Patricia Van Arnum - DCAT Editorial Director

May 16, 2019

Nestlé has entered into exclusive negotiations with a consortium led by the private equity firm, EQT, and a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) for the sale of Nestlé Skin Health for a value of CHF 10.2 billion ($10.2 billion).

Nestlé Skin Health has medical and consumer brands with three business units in prescription, aesthetics and consumer care.

Headquartered in Lausanne, Switzerland, Nestlé Skin Health employs more than 5,000 people across 40 countries. It had net sales of CHF 2.8 billion ($2.77 billion) in 2018. The proposed transaction will be subject to employee consultations and approval of regulatory authorities and is expected to close in the second half of 2019. The company said it will provide an update on the use of proceeds and its future capital structure at that time.

Nestlé Skin Health was founded in 1981 as Galderma and became a full-fledged subsidiary of Nestlé in 2014 and has operated as an independent division within Nestlé. Upon closing, the company will maintain its headquarters in Switzerland and will be renamed Galderma.

In announcing the deal, EQT outlined strategic priorities for the business: (1) for the aesthetics business, to invest in business excellence and stimulate innovation in collaboration with health professionals; (2) for the prescription division, to continue R & D and commercial development investments to strengthen the division and leverage its trading platform; and (3) for the consumer business, to increase its presence in the US, launch new products and promote international expansion.

Source: EQT and Nestlé