As part of its strategy to sharpen its focus on food, beverage and nutritional health products, Nestlé has “decided to explore strategic options for Nestlé Skin Health.”
The review is slated to conclude by mid-2019. Nestlé Skin Health, which is headquartered in Lausanne, Switzerland, offers medical and consumer brands through three complementary business units: prescription, aesthetic and consumer care. Its brands include Epiduo, Cetaphil and Proactiv. The business employees more than 5,000 people in 40 countries, and reported sales of CHF 2.7 billion in 2017.
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“Our board has fully reconfirmed the value potential of Nestlé’s nutrition, health and wellness strategy,” said Paul Bulcke, chairman of the board. “Sharpening our strategic focus on Nestlé’s core food, beverage and nutritional health products offers the best opportunity for long-term profitable growth and is fully in line with the pursuit of our company’s purpose. As a consequence, our Board is convinced that exploring strategic options for Nestlé Skin Health is in the best long-term interest of this business and Nestlé shareholders.”
CEO Mark Schneider added: “Nestlé Skin Health has made significant progress under its new leadership team over the past 2 years. The company has developed convincing growth strategies for each of its business units and regained a competitive cost structure. Now is the right time to explore the best ownership structure for Nestlé Skin Health and to consider ways of taking it to the next level.”
As part of the review, the board has re-affirmed and emphasize the strategic importance of Nestlé Health Science, its science-driven nutritional health business. Earlier this year, the company added to its nutritional health care portfolio through the acquisition of Atrium Innovations; it will continue to allocate significant resources to the division.