Private equity firms contemplate purchasing Nestle's skin health unit
Date: 2019-01-23   Author: Paroma Bhattacharya  Category: #news

Private equity firms contemplate purchasing Nestle's skin health unit

Private equity firms Advent & Cinven have reportedly teamed up to bid in an auction that could value Nestle’s skin heath business at about 7 billion Swiss francs (which is approximately $7 billion).

According to credible sources, private equity firms like Carlyle, Blackstone, CVC, KKR, Partners Group, and EQT are also expected to bid in the auction & might look for partners. Information memorandums on the skin health business sale, run by Evercore & Credit Suisse, are expected to be sent by January end and the first round of bids is likely to be submitted in early March.

Reportedly, earlier in September, Nestle S.A. launched a strategic review of the unit, aiming to get rid of underperforming businesses and fend off criticism from an activist investor who wants an overhaul.

Incidentally, according to industry analysts, the consumer health sector is now rather ripe for deals due to the aging population in numerous industrialized nations, rising incomes, and increased interest in health.

Reliable sources state that Merz Pharma, an international healthcare company based in Germany, that sells wrinkle fillers & other skin treatments, has reached out to several private equity bidders in search for a partner. Experts vouch for the fact that the move by Merz Pharma depicts the strength of the private equity tie-up in the auction, given that they have been targeting the entire Nestle unit.

Incidentally, the auction may also play host to prominent industry players such as Allergan, Beiersdorf, Johnson & Johnson, Henkel, Unilever, L’Oréal, and Pfizer.

For the record, Nestle Skin Health that sells Proactiv & Cetaphil skin care products, prescription dermatology medicines, and Restylane wrinkle fillers, last year had sales of 2.7 billion Swiss francs, accounting for nearly 3 percent of Nestle’s total sales.

Apparently, sources had previously estimated that the unit could fetch 6 billion to 8 billion francs.



About Author


Paroma Bhattacharya

Paroma Bhattacharya

Paroma currently works as a content developer for AlgosOnline. Fortified with a post-graduation degree in Journalism and Mass Communication, she delved head long into a writing career, creating resourceful and information enriched content in diverse fields. Apart from...

Read More

More from Paroma


Post Recommendents

Freshworks looks for a fresh funding round to aim at $3 Bn valuation
Author: Saipriya Iyer

As per NASSCOM, India’s software as a service (SaaS) industry is slated to grow 36 percent annually and reach $3.3-$3.4 billion by 2022. Cheaper workforce, mature sales ecosystem, abundant talent and adoption of ...


CARFIT finishes seed funding round with PlugandPlay and CIC Capital
Author: Paroma Bhattacharya

Global predictive maintenance sector is predicted to witness an exponential growth over the coming years. Seeing the immense growth opportunity, several global venture capital firms are increasingly investing in predic...


Diamond uses Zuora® Central platform to launch digital media services
Author: Pankaj Singh

Digital media has tremendously grown its presence in recent years. Looking at its potential, several media companies have decided to come out with their own digital media subscription services. One such initiative...