Nestlé to sell Skin Health unit
“Sharpening our strategic focus on Nestlé’s core food, beverage and nutritional health products offers the best opportunity for long-term profitable growth and is fully in line with the pursuit of our company’s purpose,” Paul Bulcke, Nestlé chairman of the Board, said.
The FMCG’s Board has agreed to focus more on its key growth initiatives and the implementation of its long-term business strategy. Nestlé will explore more strategic options for its Skin Health division and the review is set to be completed by mid-2019. These includes Epiduo and Soolantra in Prescription; Restylane and Azzalure in Aesthetics; Cetaphil and Proactiv in Consumer Care.
“Nestlé Skin Health has made significant progress under its new leadership team over the past two years. The company has developed convincing growth strategies for each of its business units and regained a competitive cost structure. Now is the right time to explore the best ownership structure for Nestlé Skin Health and to consider ways of taking it to the next level,” Mark Schneider, Nestlé CEO said.
The FMCG giant also emphasised its Nestlé Health Science division, which centres on medical nutrition and consumer health product. The company early this year bolstered its portfolio after acquiring the Atrium Innovations. Nestlé’s Health Science portfolio includes BOOST, Nutren, Meritene and Peptamen.
Reuters reported that the global business agreed this week to sell its Gerber Life Insurance business for $1.55 billion, while sources told the newswire it was also bidding for GlaxoSmithKline’s Horlicks drink. According to Jefferies analyst Martin Deboo, the possible exit options were either a leveraged buyout or a sale to L’Oreal.
Nestlé has also previously sold its US confectionery unit and sealed several deals in coffee business, such as Starbucks and Blue Bottle. The FMCG giant had sales of 2.7 billion Swiss francs ($2.8 billion) in 2017. Its shares were up nearly 1 per cent at 1049 GMT.