PARIS – L’Oréal is delving deeper into aesthetics with the acquisition of another 10 percent stake in Galderma Group AG, the pure-play dermatology leader worldwide and among the largest in injectable aesthetics, which it originally cofounded.
The purchase was made from a consortium led by EQT, including Sunshine SwissCo GmbH (SSCO), Abu Dhabi Investment Authority (ADIA) and Auba Investment Pte Ltd. – which all act in coordination as sellers – for an undisclosed amount.
L’Oréal now holds 20 percent of Galderma’s share capital.
“Aesthetics is a key adjacency to our core beauty business that we are keen to continue to explore,” Nicolas Hieronimus, L’Oréal chief executive officer, said in a statement on Monday. “Our initial strategic investment made in 2024 in Galderma has proven very successful, and therefore we are eager to solidify and extend the partnership further.”
“Galderma is supportive of the transaction and recognizes L’Oréal as a strong long-term partner,” L’Oréal said.
The transaction will be implemented via an off-market block trade with the EQT-led consortium. The formerly concluded shareholder deal between L’Oréal and SSCO will dissolve once the transaction is complete.
L’Oréal is funding the deal with its available cash and credit lines. It is expected to close by first-quarter 2026.
L’Oréal said it will continue supporting Galderma’s strategy and independence under the leadership of its CEO Flemming Ørnskov. It is not contemplating increasing its stake in Galderma further.
L’Oréal and Galderma are to explore reinforcing their current scientific partnership, launched when the initial stake was announced on Aug. 5, 2024.
The companies agreed to leverage Galderma’s expertise across a wide range of dermatological solutions for injectable aesthetics and therapeutic dermatology, and L’Oréal’s know-how in skin biology, diagnostic tools and evaluation methods. The partnership was also to help L’Oréal further explore the synergies between injectibles and topical treatments.
L’Oréal’s headquarters.
Courtesy Photo
Linked to L’Oréal’s increased stake, Galderma’s board of directors will consider naming two non-independent board candidates from L’Oréal. That would replace the EQT-led consortium, starting from the 2026 annual general meeting.
L’Oréal helped birth Zug, Switzerland-based Galderma, which was established in 1981 as a joint venture between L’Oréal and Nestlé. Galderma’s core brand, Cetaphil, dates back to 1947.
In 2014, Nestlé acquired L’Oréal’s 50 percent stake in Galderma. Five years later, EQT Partners investment group and a wholly owned subsidiary of the Abu Dhabi Investment authority purchased the skin care company, then called Nestlé Skin Health, for an enterprise value of 10.2 billion Swiss francs. Afterward, the group was again rebranded as Galderma.
Galderma floated on the SIX Swiss Exchange in Zurich in March 2024 to great success, ending its first trading day up 20.75 percent. The implied placement value of up to 2.3 billion Swiss francs made Galderma’s the largest IPO placement volume in Switzerland since 2017.
