Nestle is withdrawing from the market of cosmetics for skin care

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Nestle has announced that it started exclusive talks to sell its business for skin care the consortium led by EQT Partners for about $ 10.1 billion, as the company is changing its portfolio in response to changing consumer demands.

It is assumed that a potential deal with private equity company EQT, the investment unit of the Abu Dhabi Investment Authority and PSP Investments, to be completed in the second half of 2019.

In September last year, Nestle put up for sale the Department of skin care due to the implementation of the strategy of the refusal of inefficient enterprises after several years of slow growth. The company of Nestle Skin Health (NSH), which sells products for skin care Cetaphil and Proactiv, wrinkles Restylane and medicines for dermatology, last year’s profit reached the amount of about $ 2.8 billion.

Nestle has established a division, whose headquarters will remain in Switzerland, in 2014, when it bought L’oreal’s share in the joint venture Galderma. Under former head of the Corporation Box Girder skin care was part of the Nestle strategy aimed at the production of health products with high growth rate of sales to counter slowing sales of its traditional food business.

Reorganization over the past two and a half years has led to double-digit sales growth in the first quarter of 2019. It is expected that the unit, which will be renamed to Galderma, profit before interest, tax, depreciation and amortization of approximately 545 million U.S. dollars this year and more than 595 million next year, according to a source close to the company’s management.

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“EQT focuses on quality business. We have a lot of good ideas, how to make Nestle Skin Health in pearl, said in an interview for Reuters, the EQT partner and co-chair of private equity Marcus brennecke. – We will strengthen the Board of Directors of Galderma with relevant industrial experience for the development of each of the three business units in full. Several tools, prescription potential blockbuster sales with great opportunities for business.”

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