Galderma gains L’Oréal as a new major shareholder
Published: Monday, Aug 5th 2024, 10:10
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The skincare specialist Galderma appears to be attractive. The French cosmetics giant L'Oréal is joining the Zug-based company as part of a cooperation and acquiring a 10 percent stake.
The two companies intend to work together in future on the research and development of new skincare products as part of a "scientific partnership". Among other things, the focus will be on products designed to reduce the signs of skin ageing. A letter of intent to this effect has been signed with L'Oréal, Galderma announced on Monday.
The two companies see themselves as a good fit with a strong joint market position in the "fast-growing, highly attractive and consumer-focused beauty and dermatology markets".
L'Oréal acquires a 10 percent stake
As part of this new partnership, L'Oréal will acquire 10 percent of Galderma for an undisclosed price. A corresponding agreement has been concluded with the sellers Sunshine SwissCo AG (a consortium led by EQT), Abu Dhabi Investment Authority (ADIA) and Auba Investment Pte Ltd. The EQT/ADIA/Gov. of Singapore shareholder group last reported a combined shareholding in Galderma of just over 77 percent at the beginning of July.
A consortium led by the Swedish private equity group EQT bought Galderma from the consumer goods group Nestlé for more than 10 billion dollars in 2019. Galderma was then floated on the Swiss stock exchange last March. It was the largest IPO in Switzerland since 2017. EQT wanted to remain an important shareholder in the future and beyond the IPO.
Galderma CEO Flemming Ørnskov is delighted that L'Oréal has become a long-term shareholder. "L'Oréal's investment is a sign of confidence in our strategy and our growth potential," he is quoted as saying in the press release.
Michael Bauer, Partner and CO-Head Global Healthcare Sector at EQT, confirmed EQT's long-term commitment in Galderma's announcement. The transaction is part of the strategy to further support Galderma on its growth path. "We remain committed to Galderma." The sale of a minority stake to a renowned partner such as L'Oréal is an expression of this.
There will be no changes to Galderma's Board of Directors as a result of L'Oréal's investment.
Applause from the stock market
The stock market applauds L'Oréal's investment. In a currently extremely weak and unsettled environment, Galderma shares climb by around 7 percent in early trading.
The partnership with L'Oréal is a surprise, but makes sense, according to an initial assessment by Bank Vontobel. According to the bank, the topic of ageing skin is a large and growing market. Together, the two companies could develop innovative products in this area.
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