L’Oréal purchased 10% stake in Swiss skincare company Galderma.
According to Reuters, L’Oréal is acquiring the stake from Sunshine SwissCo AG- a consortium led by Swedish private equity firm EQT – Abu Dhabi Investment Authority and Auba Investment Pte. Ltd in a deal that will be completed in the coming days.
Galderma originally started as a joint venture between L’Oréal and Nestle before L’Oréal sold its 50% in 2014.
L’Oréal CEO Nicolas Hieronimus said,
“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. 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.”
With this acquisition, L’Oréal gains a stake in injectable products that reduce wrinkles such as neuromodulators and fillers, including botox, for the first time.
Recently, the two companies signed a memorandum of understanding to collaborate on research and development.
According to Galderma, L’Oréal will not take a seat on Galderma’s board, seeing as the two companies compete in skincare with L’Oréal’s CeraVe and Galderma’s Cetaphil brands.
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 concert.
According to Reuters, L’Oréal is acquiring the stake from Sunshine SwissCo AG- a consortium led by Swedish private equity firm EQT – Abu Dhabi Investment Authority and Auba Investment Pte. Ltd in a deal that will be completed in the coming days.
Galderma originally started as a joint venture between L’Oréal and Nestle before L’Oréal sold its 50% in 2014.
L’Oréal CEO Nicolas Hieronimus said,
“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. 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.”
With this acquisition, L’Oréal gains a stake in injectable products that reduce wrinkles such as neuromodulators and fillers, including botox, for the first time.
Recently, the two companies signed a memorandum of understanding to collaborate on research and development.
According to Galderma, L’Oréal will not take a seat on Galderma’s board, seeing as the two companies compete in skincare with L’Oréal’s CeraVe and Galderma’s Cetaphil brands.
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 concert.
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