Following a comprehensive strategic review which is scheduled to be completed in mid-2019, Zurich, Switzerland-based Nestle has decided to increase the company’s attention on their traditional core products in the foods, drinks, and nutritional health sectors.
It appears that Nestle will be exploring “strategic options” for its Skin Health business which includes the well-known face care products Cetaphil and Proactiv. It is believed that the decision was driven in part by activist hedge fund investor Dan Loeb who runs Third Point and who appeared to have recommended the sale. The division, with sales of approximately $2.8 billion in 2017 could go for an estimated $8+ billion.
The handwriting is clearly on the wall. Employees should be prepared for job cuts as the unit is prepared for sale and then additional cuts after any acquisition or merger as duplicative functions are eliminated and the firm is integrated into a new business framework.
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