Nestle in talks with EQT Partners to sell skin health unit

A pedestrian passes a Nestle SA logo at the Nescafe factory, operated by Nestle SA, in Tutbury, U.K., on Thursday, Aug. 23, 2018.

Simon Dawson | Bloomberg | Getty Images

Nestle can be in exclusive talks using a consortium led unit, according to a source familiar with the matter.

EQT can be putting the finishing touches to the deal, which might value the unit at up to $10 billion as well as could be signed within the next 24 hours, the source said.

EQT has teamed up with Abu Dhabi Investment Authority (ADIA), several sources told Reuters. This specific faced competition coming from rival buyout funds as well as some industry players including a consortium of Advent as well as Cinven as well as U.S. private equity firm KKR & Co Inc as well as European fund PAI Partners, the sources said.

Nestle’s skin health unit, which sells Cetaphil, was formed in 2014 when This specific bought a stake in cosmetics brand L’Oreal.

The unit was put up for sale last September, as Nestle tries to ditch underperforming businesses in an effort to fend off criticism coming from an activist investor demanding an overhaul.

Nestle as well as EQT declined to comment.

The Financial Times reported about the deal talks earlier within the day.