Nestle SA in exclusive talks with consortium led EQT Partners and ADIA for selling its skin health business

Although there is no certainty that the deal will go through, but if and as and when it does, Nestle will provide an update on how it will use the proceeds as well as provide a layout of its future capital structure.

In a significant development, Nestle SA has entered into exclusive negotiations with a consortium led by private equity firm EQT Partners and ADIA in order to sell its skin health business worth $10.12 billion (10.2 billion Swiss francs).

The proposed transaction with EQT and a unit of the Abu Dhabi Investment Authority (ADIA) was expected to close in the second half of this year, pending regulatory approval.

In a statement, Nestle said it will provide an update on how it will use the proceeds and its future capital structure at that time.

Both, ADIA and EQT faced competition from rival buyout funds as well as industry players including a consortium of Advent and Cinven, U.S. private equity firm KKR & Co Inc and European fund PAI Partners, said sources.

Nestle’s skin health unit was formed in 2014. It put up the business for sale in September 2018 as part of an effort to reduce under-performing businesses and fend off criticism from an activist investor.

In 2018, Nestle Skin Health showed net sales of 2.8 billion Swiss francs. Based out of the Swiss city of Lausanne, it employs more than 5,000 people across 40 countries.

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