Nestlé Focuses on Skin Health
Nestlé’s board of directors has approved a broader strategic long-term orientation for the company, building on Nestlé’s historic strength as a science-based nutrition, health and wellness company. The recent creation of Nestlé Health Science and the Nestlé Institute of Health Sciences reinforced this strategic direction and focus on helping consumers lead a healthier life through nutritional solutions from food and beverages to life-enhancing scientific products.
Responding to increasing consumer needs, Nestlé will extend its activities to include the field of specialised, medical skin treatments through the creation of Nestlé Skin Health, a global leader focused on meeting the world’s increasing skin health needs with a broad range of innovative and scientifically-proven products. Nestlé Skin Health will be managed as a wholly-owned Nestlé subsidiary with its own board of directors and headquarters located in Lausanne.
In line with this broadened strategy, Nestlé is reducing its stake in L’Oréal from 29.4% to 23.29% but also acquiring full ownership of Swiss dermatology pharmaceuticals company Galderma (a 50/50 joint venture between L’Oréal and Nestlé) for an enterprise value of Eur3.1 billion.
Upon approval and completion of this transaction, Galderma will form the foundation of Nestlé Skin Health. Bübchen, Nestlé’s existing infant skin care business, will be merged into this newly-formed entity which will provide a sizeable platform for profitable growth.
