Nestle launches skincare auction, sources say
21 NOV 2018
Nestle [VTX:NESN] has sent books to potential suitors for its Nestle Skin Health division, said two sources familiar with the matter.
Last month, this news service reported that the Swiss food giant had retained Credit Suisse and Evercore to advise on a review of its skin health business. Nestle said in September it was exploring a sale or spin-off of Nestle Skin Health, which owns several prescription, aesthetics and consumer skin care brands, and accounts for roughly 3% of Nestle’s USD 2.8bn in revenue.
CVC Capital Partners, KKR, EQT Partners, and The Blackstone Group are among the potential financial sponsor bidders for the business, said one of the first two sources and two additional sources familiar.
Several of the sources said large-cap private equity firms are the most likely contenders for Nestle Skin Health, as many strategics in the consumer space would be deterred by the prescription arm of the business, which includes Epiduo Forte acne gel and Soolantra rosacea medication.
The large size of the Skin Health division would also make a strategic sale difficult, although two of the sources pointed to Johnson & Johnson [NYSE:JNJ] as a company that could express interest.
US activist Third Point has been pressuring Nestle to shake up its portfolio. Evercore has been advising Nestle on its response to Third Point after beating Credit Suisse for the mandate, this news service has reported. It has been reported that Nestle Skin Health could command a valuation up to around USD 8bn.
EQT Partners, Evercore, KKR, The Blackstone Group and Nestle declined to comment. Credit Suisse and CVC Capital Partners did not return requests for comment.