Nestle branches out into skin care

Last updated 10:24 12/02/2014

Relevant offers


Did Coke influence anti-obesity group Global Energy Balance Network? Australian dollar climbs as RBA chief Glenn Stevens cools on rate cut Hostages taken by gunmen in French town 'now safe' Car emissions campaigners turn sights on Renault 'Beer wench' help wanted ad for NZ-Australia Adelaide cricket match Yahoo blocks email users if they use ad-blockers Viagra maker Pfizer and Botox maker Allergan ink US$160 billion deal Sydney landlord ordered to pay over $12,000 to tenant because of chain-smoking neighbour Job ad targeting women for receptionist duties sparks anger Sydney builder Bill Issa convicted of attacking clients who complained

Swiss food and drink group Nestle is creating a new unit for medical skin treatments via a deal that reduces its stake in French cosmetics company L'Oreal.

The Vevey, Switzerland-based company said on Tuesday it would take full ownership of Swiss dermatology pharmaceuticals company Galderma, which had been a 50/50 joint venture with L'Oreal.

It will use Galderma's management to form a new unit called Nestle Skin Health SA.

Nestle is striving to reposition its food-and-beverage business more into the nutrition and wellness fields.

Galderma's business fits in that new mold.

"The future of skin health and dermatology is a buoyant market globally," Nestle chief executive Paul Bulcke said.

Galderma, a Swiss company created in 1981, sells products in 70 countries that treat skin diseases including acne, psoriasis and cancer. The deal is subject to regulatory approval.

As part of the complicated deal, which is valued at €6.5 billion ($10.7 billion), Nestle's stake in L'Oreal will fall from 29.4 per cent to 23.3 per cent.

L'Oreal will buy back €48.5 million of its own shares and then cancel them.

Nestle chairman Peter Brabeck-Letmathe said the deal did not mean the company was abandoning its involvement in L'Oreal.

"Nestle will continue to support the development of L'Oreal as in the past 40 years," he said.

Following the share buyback and cancellation, the Bettencourt Meyers family's stake in L'Oreal will increase from 30.6 per cent to 33.3 per cent.

Ad Feedback

- AP

Special offers

Featured Promotions

Sponsored Content