Nestle is in talks with an EQT-led consortium to sell its skincare arm in a deal valued at SFr 10.2bn (£7.9bn), the companies confirmed today.
Representatives of the two groups have entered exclusive negotiations over the future of Nestle Skin Health, which was brought into the Swiss conglomerate in 2014.
The business has revenues SFr 2.8bn and employs around 5,000 people worldwide.
Swedish private equity firm EQT will be joined at the negotiation table by Luxinva, part of Abu Dhabi’s sovereign wealth fund, and Canada’s Public Sector Pension Investment Board.
The consortium plan to expand the skincare unit in the US, launch new products and keep growing the consumer health part internationally.
It will also revert the business to its old name, Galderma.
Nestle Skin Health was formed out of Galderma after Nestle’s bought out L’Oreal from the joint venture in 2014.
“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.”
The consortium is advised by Rothschild and PwC.