L’Oréal Acquires 10% Stake in Galderma, Complemented by Scientific Partnership
Last update on Aug 13, 2024
announces the acquisition of a 10% stake in Galderma Group AG from Sunshine SwissCo AG (a consortium led by EQT), Abu Dhabi Investment Authority (ADIA), Auba Investment Pte. Ltd. (all acting in coordination as sellers), for a non-disclosed amount.In addition, L'Oréal and Galderma have agreed to work towards a strategic scientific partnership that will leverage the undisputed expertise of both companies: Galderma's across a broad range of dermatological solutions, and L'Oréal's expertise in skin biology, diagnostic tools, and evaluation methods.
Repairing, Preventing, & Intercepting Signs of Skin Aging
'I am very pleased to announce this strategic investment and partnership with Galderma. 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 beauty play' said Nicolas Hieronimus, chief executive officer of L'OREAL. '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.'
Beauty and forerunner in Beauty Tech, L'Oréal is increasingly investing in a more holistic approach, spanning the entire beauty routine. 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's strategic investment in Galderma confirms the solid growth journey that the company has embarked on over the past decade. Under the successful leadership of Flemming Ørnskov, M.D., MPH, chief executive officer of Galderma, with the support of the EQT-led consortium, Galderma has established itself as the pure-play dermatology category and one of the world's largest players in injectable aesthetics. Galderma offers a broad portfolio of dermo-cosmetics, dermatologic drugs, and best-in-class hyaluronic acid (HA) fillers, neuromodulators, and biostimulators.
Galderma is fully supportive of the transaction and of the strategic scientific partnership and welcomes L'Oréal as a strong long-term partner.
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 shareholders' agreement entered into with Sunshine SwissCo AG.
The transaction will be implemented by way of an off-market block trade with the EQT-led consortium. L'Oréal and the EQT-led consortium do not intend to act in the concert. The transaction will be funded with L'Oréal's available cash and credit lines, and closing is expected to be completed in the coming days.
Source: L'Oréal
Source
L’Oréal