L’Oréal has acquired a 10% stake in Galderma Group, the dermatology brands and services company.
The move will prime the French beauty giant to explore the ‘fast-growing’ aesthetics market, according to its CEO.
L’Oréal bought the stake from EQT-led consortium Sunshine SwissCo, Abu Dhabi Investment Authority and Auba Investment for an undisclosed sum.
Switzerland-based Galderma specialises in injectable aesthetics, dermatological skin care and therapeutic dermatology.
Its portfolio encompasses brands like hyaluronic acid filler Restylane and sensitive skin care brand Cetaphil, a rival to L’Oréal’s affordable derm player CeraVe.
Galderma was established as a joint venture between L’Oréal and Nestlé in 1981, but has been held by the private investors’ consortium since 2019.
In March this year, it floated on the Swiss Exchange, a strategy intended to broaden its shareholder base.
Further to the deal, L’Oréal and Galderma have shaken hands on a scientific partnership.
This will leverage Galderma’s dermatological solutions and L’Oréal’s expertise in skin biology, diagnostic tools and evaluation methods.
“I am very pleased to announce this strategic investment and partnership with Galderma,” said L’Oréal CEO Nicolas Hieronimus.
“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.”
L’Oréal said it would not seek representation on Galderma’s board of directors.
Hieronimus added: “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.”
“We are delighted to welcome L’Oréal as a new, long-term Galderma shareholder and see their investment as a sign of confidence in our strategy, track record and growth potential,” Flemming Ørnskov, CEO of Galderma, commented.
“We look forward to pursuing scientific partnership opportunities together, for the benefit of the customers, patients and consumers we serve across the globe every day.”
Closing is expected to complete within days, according to L’Oréal.
L’Oréal has been reaping the rewards of a focus on dermocosmetics.
Its half-year 2024 results, announced last week, were buoyed by a standout performance from L’Oréal’s Dermatological Beauty division, which increased 16.4%.