Responding to increasing consumer needs, Nestlé will be extending its activities to include the field of specialized, medical skin treatments through the creation of Nestlé Skin Health S.A.
Nestlé Skin Health S.A. will be managed as a wholly-owned Nestlé subsidiary with its own Board of Directors and headquarters located in Lausanne Geneva, Nestlé will now be able to provide science-based solutions for skin conditions
Mr Paul Bulcke Chief Executive Officer of Nestle SA, in a video conferencing to give a full year report of the Company for 2013 said Nestlé Board of Directors, has elaborated and approved a broadened strategic long-term orientation for the company to build on Nestlé’s historic strength as a science-based nutrition, health and Wellness Company.
“The recent creation of Nestlé Health Science S.A. and the Nestlé Institute of Health Sciences reinforced this strategic direction and focuses on helping consumers lead a healthier life through nutritional solutions from food and beverages to life-enhancing scientific products”, he added.
He explained that Nestlé Board of Directors in line with this strategy has therefore approved the sale of 48.5 million L’Oréal shares to L’Oréal for cancellation. Part of the proceeds would be used for the acquisition of the 50 per cent stake of Galderma from L’Oréal, “bringing our ownership of Galderma to 100 percentages”.
Upon approval and completion of this transaction, Galderma will form the foundation of Nestlé Skin Health S.A. Nestle will merge Bübchen, our existing infant skin care business, into this newly-formed entity which will provide a sizeable platform for profitable growth.
In addition Nestlé intends to use the cash proceeds of this transaction to launch a share buyback programme.
Nestlé CEO Paul Bulcke said “Nestlé Skin Health will have a broad commercial and Research and Development platform enable them deliver state of the art solutions focused on maintaining, treating and restoring the health of the skin.
Galderma is a global company founded in 1981 committed to delivering innovative medical solutions to meet the dermatological needs of people throughout their lifetime while serving healthcare professionals around the world.
Nestlé Skin Health will have a full range of products for the skin, hair and nail including self-medication drugs, quasi-drugs such as medicated soaps or sunscreens, therapeutic skin care products, pharmaceuticals, prescription drugs and medical devices.
Nestlé Skin Health, a wholly-owned subsidiary of Nestlé, will become operational as soon as regulatory requirements and competition authority clearance have been provided. GNA