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L’Oréal SA is doubling its stake in Galderma Group AG to 20 percent, as the French cosmetics company increases its bet on skincare drugs.
The purchase price for the 24 million shares — from an investor group led by private equity firm EQT AB — is undisclosed, L’Oréal said Monday. Galderma will consider naming two L’Oréal representatives to its board, replacing directors from the EQT group.
Based on Friday’s closing price for Galderma of 162.80 Swiss francs, a 10 percent stake is valued at about 3.9 billion francs ($4.9 billion). The shares rose as much as 4.5 percent in early trading in Zurich, while L’Oreal’s stock dropped 1.7 percent.
It’s the latest in a slew of deals by L’Oréal, which recently bought South Korean brand Dr. G and took a majority stake in UK skincare brand Medik8 as it tries to boost its offering in the fast-growing dermatological beauty space.
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“The expansion of L’Oreal’s Galderma stake makes strategic sense as Galderma brings scientific leadership in dermatology to the table and L’Oreal its expertise as the world’s leading beauty player,” Vontobel analyst Stefan Schneider said in a note. The transaction will also reduce the number of Galderma shares held by private equity investors seeking an exit, he added.
Galderma, whose products include dermo-cosmetics, drugs and injectable skin fillers, was founded in 1981 as a joint venture between L’Oréal and Nestle SA. The Swiss food group exchanged part of its holding in L’Oreal for the French company’s stake in Galderma in 2014.
Nestle then agreed to sell Galderma to a consortium led by Swedish buyout group EQT in 2019, following pressure by activist investors to focus its business on nutrition and health. Galderma was listed in Switzerland in March 2024, and L’Oréal bought a 10 percent stake the following August.
EQT, the world’s second-biggest private equity firm based on capital raised, said the transaction with L’Oréal was struck at a premium, and that out of the total shares to be sold, about 6 million are attributable to EQT.
By Phil Serafino
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