PARIS – L’Oréal is digging deeper into the dermatological products market, taking a 10 percent stake in Galderma, the pure-play dermatology leader and among the largest in injectable aesthetics, which it originally co-founded.
L’Oréal said Monday it had acquired the share in Galderma Group AG from Sunshine SwissCo AG, a consortium led by EQT, Abu Dhabi Investment Authority and Auba Investment Pte. Ltd.
Financial terms of the deal were not disclosed. L’Oréal said the transaction will be made via an off-market block trade with the EQT-led consortium.
“L’Oréal and the EQT-led consortium do not intend to act in concert,” L’Oréal said in a statement Monday morning.
L’Oréal said it will fund the deal with its available cash and credit lines. The closing is expected in a few days.
Additionally, L’Oréal and Galderma have agreed to a new strategic scientific partnership, which will leverage Galderma’s expertise across a wide range of dermatological solutions and L’Oréal’s know-how in skin biology, diagnostic tools and evaluation methods.
Galderma 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, or $11.53 billion. Afterward, the group was again rebranded as Galderma.
Galderma today is present in more than 90 countries and counts 6,500 employees worldwide. Its brand include Actinica, Benzac, Azzalure, Differin and Dysport, offering a wide-ranging portfolio of dermocosmetics, dermatological drugs and hyaluronic acid fillers, neuromodulators and biostimulators.
L’Oréal headquarters.
Courtesy of Abbadie Herve/L’Oréal
Galderma floated on the SIX Swiss Exchange in Zurich on March 22, ending the first trading day up 20.75 percent.
Nicolas Hieronimus, chief executive officer of L’Oréal, said in a statement: “It marks an ambitious step for L’Oréal, and true to our mantra of ‘seize what is starting,’ it allows us to explore partnering in the fast-growing aesthetics market, a key adjacency to our own pure play.
“We fully support Galderma’s management and its strategy as a leading dermatology pure player, respect its independence and are very confident in its long-term growth potential,” he continued.
L’Oréal said that it is increasingly taking a holistic approach to investing, as the world’s largest beauty giant and beauty tech company.
“This approach aims to blend diagnostic tools, high-performance topical products, consumer devices and aesthetic treatments, to deliver new combined levels of performance by correcting, repairing, preventing, anticipating and intercepting the signs of skin aging,” L’Oréal said.
The group lauded Galderma’s growth over the past decade, under the leadership of CEO Flemming Ørnskov, with the support of the EQT-led consortium.
“L’Oréal will not seek to be represented at Galderma’s board of directors and has agreed to customary provisions for an investment of this type as part of a shareholder’s agreement entered into with Sunshine SwissCo AG,” L’Oréal said.
