Nestle in talks with EQT Partners-led group for skincare unit sale

Nestle SA is in exclusive talks with a consortium led by private equity firm EQT Partners for a sale of its skin health unit, according to a source familiar with the matter.

EQT is putting the finishing touches to the deal, which would value the unit at up to $10 billion and could be signed in the next 24 hours, the source said.

EQT has teamed up with Abu Dhabi Investment Authority (ADIA), several sources told Reuters. It faced competition from rival buyout funds and some industry players including a consortium of Advent and Cinven as well as U.S. private equity firm KKR & Co Inc and European fund PAI Partners, the sources said.

Nestle’s skin health unit, which sells Cetaphil, was formed in 2014 when it bought a stake in cosmetics brand L’Oreal.

The unit was put up for sale last September, as Nestle tries to ditch underperforming businesses in an effort to fend off criticism from an activist investor demanding an overhaul.

Nestle and EQT declined to comment.

The Financial Times reported about the deal talks earlier in the day.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.