Nestlé is exploring strategic options for its Skin Health business
Nestlé Skin Health has opened an office in Malaysia, as media reports suggest a number of private-equity firms are interested in making a bid for the business.
Nestlé announced in September 2018 that it was exploring strategic options for its Skin Health business, which markets a range of medical and consumer healthcare products. The Swiss company said "future growth opportunities of Nestlé Skin Health lie increasingly outside the group's strategic scope" (click here to read the News story).
According to a recent Reuters report, private-equity firms Advent and Cinven have teamed up to bid in an auction that could value Nestlé Skin Health at around CHF7 billion (USD7 billion).
Quoting three sources familiar with the matter, Reuters said a number of other private-equity firms – including Blackstone, Carlyle, CVC, EQT and KKR – were also expected to make bids for Nestlé Skin Health.
Industry players that might take part in the auction, added Reuters, included Allergan, Beiersdorf, Henkel, Johnson & Johnson, L'Oréal, Merz Pharma, Pfizer and Unilever.
Reuters said first-round bids were expected to be made in early March.
Important to establish on-the-ground presence
Commenting on the new office in Malaysia, Fraser Halscheid – Nestlé Skin Health's head of Asiana and general manager Singapore – said it was "important to establish an on-the-ground presence given how active we are in the market".
"Our dedicated local team will allow us to establish even closer ties with our customers here," added Halscheid, "and better understand the nuances and needs of skin health consumers in the country."
Nestlé Skin Health said a local team led by commercial director Cindy Tiu would staff the Kuala Lumpur office.
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