Nestle advances its new skincare business with a $1.4B deal with Valeant.
The Swiss food group Nestle famed for brands including KitKat, Gerber baby food and Nescafe coffee stepped up efforts in its new skincare market on Wednesday. Nestle bought the rights to several treatments designed for anti-aging from Canadian firm, Valeant Pharmaceutical International, for $1.4 billion in cash. The company indicated its intentions to enter a new market in February by taking over the Galderma dermatology venture shared with L'Oreal.
On top of this, Nestle is also acquiring a dermal filler for cosmetic and medical use called Sculptra. Nestle's Chairman Peter Brabeck Letmathe said: "With this deal we have acquired key strategic assets to extend Nestle's activities in the field of specialised, medical skin treatments, providing consumers with life-enhancing scientific products." He went on to state that: "This move will reinforce Galderma's leading position in the industry when it becomes Nestle Skin Health by allowing it to complete its geographic footprint for its strong portfolio of brands and leading medical solutions globally."
Nestle also has a specialised unit called Nestle Health Science that sells medical nutrition products for people with precise dietary requirements due to illness or disease. This unit is also working to develop products in the areas of gastrointestinal, metabolic and brain health. Nestle is hoping to close its acquisition of Galderma in July and aims to direct its new assets and ventures through this business.