By Michael Shields
ZURICH (Reuters) – Nestle SA has entered unique negotiations to promote its skin health enterprise to a consortium led by EQT Partners and Abu Dhabi’s ADIA in a deal value 10.2 billion Swiss francs ($10.12 billion), it mentioned on Thursday.
The proposed transaction with non-public fairness agency EQT and a unit of the Abu Dhabi Investment Authority was anticipated to shut in the second half of 2019, pending regulatory approval, it mentioned.
Nestle will present an replace on the way it will use the proceeds and its future capital construction at the moment, the world’s greatest packaged meals group mentioned in a press release.
Nestle shares have been indicated zero.6% increased in pre-market exercise.
Reuters and the Financial Times had reported on Wednesday that EQT was placing the ending touches to the deal.
Nestle Chief Executive Mark Schneider put the skin health unit up for sale final September because the group moved to ditch underperforming companies in an effort to fend off criticism from an activist investor who wished an overhaul.
Nestle Skin Health, which sells Cetaphil and Proactiv skin care merchandise, Restylane wrinkle fillers and prescription dermatology medicines, had gross sales of 2.eight billion Swiss francs final 12 months.
Nestle created the unit in 2014 when it purchased out L’Oreal’s stake in their Galderma three way partnership.
Under former Chief Executive Paul Bulcke, skin therapies have been half of Nestle’s push into higher-growth health merchandise to counter a slowdown in its conventional meals enterprise.
But the unit has carried out poorly, main to one-off prices and restructuring.
EQT and ADIA had confronted competitors from rival buyout funds and a few trade gamers together with a consortium of Advent and Cinven, in addition to U.S. non-public fairness agency KKR & Co Inc and European fund PAI Partners, sources had mentioned.
(Reporting by Michael Shields and Pamela Barbaglia; Editing by Brenna Hughes Neghaiwi and Jan Harvey)