Nestlé is conducting a maxi-negotiation for sell its subsidiary Nestlé Skin Health, which includes brands such as Cetaphil, Proactiv and Restylane. This was announced by the Swiss industrial giant itself, specifying that the operation is worth a total of 10,2 billion Swiss francs, equal to 9 billion euros, and that the closing should arrive in the second half of the year. It would be the second largest M&A deal in Europe since the last financial crisis.
Negotiations are held exclusively with a consortium which includes the Swedish fund EQT and a subsidiary of the Abu Dhabi Investment Authority sovereign wealth fund.
A consultation with the workers' representatives will take place on the possible transfer.
The move doesn't come entirely as a surprise. Since Mark Schneider became CEO of Nestlé two years ago, the group has significantly repositioned its product portfolio. Already in the second half of last year, it announced its intention to sell the skin care division.
Established in 2014 with headquarters in Lausanne, Nestle Skin Health it employs more than 5 people worldwide and last year recorded sales of 2,8 billion Swiss francs.
At this price, "the expected transaction is a good deal for Nestlé," said Jon Cox, an analyst at Kepler Cheuvreux, underlining that the sale allows the group to sell an asset that is not part of its core business.
