Today, L’Oréal has announced the acquisition of a 10% stake in Galderma Group AG from Sunshine SwissCo AG, a consortium led by EQT, along with Abu Dhabi Investment Authority (ADIA) and Auba Investment Pte. Ltd., for an undisclosed sum. This strategic move not only strengthens L’Oréal’s position in the dermatology and aesthetics market but also paves the way for a scientific partnership between the two companies.
L’Oreal said that the partnership will capitalize on Galderma’s extensive expertise in dermatological solutions and L’Oréal’s prowess in skin biology, diagnostic tools, and evaluation methods.
As a leader in beauty and Beauty Tech, L’Oréal is committed to a holistic approach that integrates diagnostic tools, high-performance topical products, consumer devices, and aesthetic treatments. This strategy aims to deliver superior performance by addressing various aspects of skin ageing, from correction and repair to prevention and anticipation.
Nicolas Hieronimus, CEO of L’Oréal, expressed enthusiasm about the collaboration, highlighting its potential to enhance L’Oréal’s offerings in the rapidly growing aesthetics market, which complements their existing beauty portfolio. He emphasized L’Oréal’s support for Galderma’s management and its strategy, affirming confidence in Galderma’s long-term growth.
L’Oréal will not seek representation on Galderma’s Board of Directors and has agreed to customary investment provisions in the shareholders’ agreement with Sunshine SwissCo AG. The transaction, facilitated by an off-market block trade with the EQT-led consortium, will be funded through L’Oréal’s available cash and credit lines, with closing expected in the coming days.
According to the latest disclosed financial report, in the first half of this year, Galderma’s net sales were $2.2 billion, an increase of 10.8% at constant exchange rates, with a core EBITDA of $514 million. The net sales of dermatological skincare products were $675 million, representing an 11.8% year-on-year increase at constant exchange rates.
In the first half of the year, L’Oréal’s sales reached €22.12 billion, a year-on-year increase of 7.3%. The sales of the dermatological beauty department reached €3.793 billion, a year-on-year increase of 16.4%.
