NEW YORK, June 12 (Reuters) - Kenvue ( KVUE ) is

exploring the sale of some of its skin health and beauty brands,

four people familiar with the matter said on Thursday, as the

consumer health firm prunes an underperforming business segment

to focus on core products.

The company, which was spun out of Johnson & Johnson ( JNJ )

in 2023, is zeroing in on smaller brands in the unit to sell

such as Clean & Clear, Maui Moisture, Neostrata, its German baby

care brand Bebe, and Japanese brand Dr.Ci:Labo, the sources

said.

It plans to hold onto the bigger names in the unit, such as

Neutrogena and Aveeno, the sources said. There are about a dozen

brands in the skin health and beauty unit, and sources cautioned

that the divestiture package could change and no deal was

guaranteed.

Investment bankers at Goldman Sachs ( GS ) are working with

Kenvue ( KVUE ) on the divestment process, they added.

Kenvue ( KVUE ) and Goldman declined to comment.

The around half-dozen brands earmarked for sale would

generate more than $500 million of revenue together, two of the

sources said, a small portion of Kenvue's ( KVUE ) overall revenue, which

was $15.5 billion in 2024.

The skin health and beauty unit has been a drag on Kenvue's ( KVUE )

earnings, but the company has dedicated more money to marketing,

especially on Neutrogena ad campaigns. The unit's organic sales

declined 4.8% year-over-year in Kenvue's ( KVUE ) latest quarter that

ended March 30.

Kenvue ( KVUE ), which also makes Tylenol and Band-Aids, has faced

activist pressure over the last year from Starboard Value, Toms

Capital Management and Third Point. It settled with Starboard in

March, when it added the investment firm's founder to its board.

Some of the activists have been pushing the company to

consider selling itself or certain brands.

In May, the company brought on new Chief Financial Officer

Amit Banati from Kellanova ( K ), Kellogg's ( K ) spun-out snacking

unit.