Nestlé to put skin health division up for sale
Nestlé announced on Thursday it is considering selling its skin health division and its price of the sale could reach up to €7bn.
Nestle Sa
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07:45 20/03/24
The division that reported €2.3bn in sales in 2017 and employs almost 5,000 people, "lies outside the group’s strategic scope". Nestlé said it wanted to focus more on food, beverage and nutritional health products.
Nestlé's skin health that manufactures from acne treatments to face fillers is now being considered for sale or flotation. This move will reverse the step the company took into skin health under Paul Bulcke, former CEO.
Mark Schneider, the chief executive who took charge in January last year is under pressure from activist investor Dan Loeb to reshape the portfolio more quickly. Nestlé has other candidates to let loose according to Bloomberg, including all or part of its US frozen food business and its joint ventures with General Mills in cereals and R&R in ice cream.
Nestlé also agreed this week to sell its Gerber Life Insurance business for $1.55bn, while it could also be bidding for GlaxoSmithKline PLC’s Horlicks drink.
Schneider set a profit target for the first time recently, Nestle now aims to achieve a profit margin of between 17.5% and 18.5% by 2020.