Nestle (SWX:NESN) announced on Thursday that it had entered into exclusive negotiations with a consortium led by EQT for the dale of Nestle Skin Health for 10.2 billion Swiss francs.
EQT is a wholly owned subsidiary of the Abu Dhabi Investment Authority (EDIA).
Nestle said that the deal is subject to employee consultations and approval of regulatory authorities. It expects to close around the second half of the current year, when the company will provide an outline on the use of the proceeds and its future capital structure.
According to Reuters, sources have said that there was competition from a consortium of Advent and Cinven in addition to a U.S private equity firm KKR & Co Inc and European fund PAI partners.
Nestle is a leading Swiss food and drink company across the globe with its headquarters in Vevey, Vaud, Switzerland.
Established in 2014, Nestle’s Skin Health unit provides science-based solutions to address specific skin health needs of healthcare professionals, patients and consumers. Nestle said that it offers a range of leading medical and consumer brands through three complementary business units in prescription, aesthetics and consumer care.
Nestle Skin Health is headquarters in Lausanne, Switzerland, and employs over 5,000 workers across 40 different countries.
Last month Nestle confirmed its annual guidance following a good momentum in its US and China markets. Excluding businesses under strategic review, the group posted an organic growth of 3.2%.
As for its confectionary brands, the success of its well loved KitKat chocolate means that it does not need to add any new business to its portfolio. It also sold its U.S confectionary business to Italy’s Ferrero last year in a $2.8 billion deal, in order to position itself closer to health-conscious products. Because of its KitKat success, the company does not need to fill the confectionary-shaped gap following the sale to Ferrero.