Nestlé announces plan to divest Skin Health division ($4.1bn)

Nestlé has announced today that it intends to sell its Skin-Health division, which analysts estimate to be worth at least $4.1bn. The decision is probably due to investors–such as Daniel Loeb–increasingly pressurizing Nestlé into reorganizing the group. The Switzerland-based company has recently sold its U.S. confectionery business to The Ferrero Group in a $2.8bn cash transaction. Additionally, it has divested Gerber Insurance to Western & Southern Financial Group for $1.5bn cash. Investor  Daniel Loeb over the last few days has increased his shareholding in Nestlé to $3.5bn. Since then, ha has reiterated that the group’s management should sell the Skin Health asset and its shareholding in L’Oréal.

The business had annual sales of $2.7bn last year and includes relevant brands, such as Cetaphil and Proactiv. The division was created in 2014, following the acquisition of Galderma and of Valeant’s skin care products ($1.4bn).

(Source: WSJ)