A consortium led by EQT is a private equity group alongside Abu Dhabi Investment Authority in unique conversations to buy a Nestlé skin care unit for around $ 9.96bn, according to a statement on Thursday morning.
The Financial Times first reported that EQT had held discussions with Nestlé on Wednesday at a very competitive auction in one of the biggest transactions in Europe this year.
The group of investors, which also includes the Canadian PSP, will help the business grow further “by building on strong market positioning and brands”, he said.
The unit, established in 1981, has been part of Nestlé since 2004 and has a combined revenue generation of SFr2.8bn ($ 2.78bn), and employs over 5,000 people. .
EQT said it would try to stimulate innovation, invest in research and development and expand its presence in the US.
Michael Bauer, head of global healthcare at EQT, said: “The company's heritage as a skin care company with a comprehensive product portfolio, exceptionally strong brands and high customer loyalty is unique. This growth investment opportunity fits well with EQT DNA from driving growth and making strong companies even stronger. ”
Hamad Shahwan Al Dhaheri, executive director of the private equity department at ADIA, said: “This proposed transaction fits in with our approach to making strategic investments alongside proven partners to help strong, innovative businesses. to grow. ”
The company will keep its headquarters in Switzerland and be renamed Galderma, says the statement.
Any potential deal is subject to employee consultations and normal regulatory approvals.
Rothschild & Co and PwC have been financial advisers to the EQT, ADIA and PSP consortium. Kirkland & Ellis International acted as legal adviser.