Nestlé in talks to sell its skincare business for $10.12 billion
Nestlé has entered exclusive talks to sell its skincare business, which includes Proactiv acne treatments and Cetaphil moisturizers, for $10.12 billion to a private equity group that includes EQT Partners and the Abu Dhabi Investment Authority.
Why it matters: This would be Europe's second-largest private equity deal since the financial crisis, according to Refinitiv. It also comes amid a flurry of other skincare deals, including Beiersdorf's purchase of Coppertone earlier this week.
The bottom line: "The cash injection could make Nestle well-placed for further acquisitions, though large ones would probably face antitrust issues given the Swiss company’s market position in food and beverages. Nestle’s cash pile may get even larger as it expects to sell its Herta lunch-meat business by mid-year and has put medical unit Prometheus Labs on review." — Bloomberg