2024 – L’Oréal Invests in Galderma – May 8th, 2024 at 8:53
L’Oréal, the renowned French cosmetics giant, has just made a significant move in the industry with the acquisition of a 10% stake in Galderma Group. This strategic investment was made from Sunshine SwissCo, a consortium led by EQT, as well as from Abu Dhabi Investment Authority (ADIA) and Auba Investment. While the exact amount of the transaction has not been disclosed, it is clear that L’Oréal is making a substantial investment in the dermatology and injectable aesthetics sector.
In addition to acquiring this stake in Galderma Group, L’Oréal has also committed to collaborating with the company to establish a strategic scientific partnership. This partnership will allow both companies to leverage their respective expertise and further advance innovation in the field of dermatology and injectable aesthetics.
Interestingly, L’Oréal has made it known that they will not have a seat on Galderma’s board. This decision was made in accordance with customary terms for such investments, as outlined in a shareholders’ agreement with Sunshine SwissCo. It is important to note that L’Oréal and Sunshine SwissCo have confirmed that they have no intention of acting in concert, maintaining a clear and separate relationship in this venture.
The financing for this transaction will come from L’Oréal’s available cash reserves and a credit facility that was specifically set up for this purpose. The acquisition will be carried out through an off-market transaction with EQT and the consortium, with the closing expected to take place in the near future.
This move by L’Oréal marks a significant step forward in the company’s expansion into the dermatology and aesthetics market. By partnering with Galderma Group, a well-established player in the industry, L’Oréal is positioning itself as a key player in the field of skincare and aesthetics.
The strategic scientific partnership that L’Oréal and Galderma Group are set to establish will undoubtedly lead to the development of innovative products and treatments that will benefit consumers worldwide. With L’Oréal’s expertise in cosmetics and skincare combined with Galderma’s knowledge in dermatology and injectable aesthetics, the possibilities for groundbreaking advancements in the industry are endless.
This acquisition also highlights L’Oréal’s commitment to growth and innovation. By investing in a company like Galderma Group, L’Oréal is demonstrating its dedication to staying at the forefront of the beauty and skincare industry. This move will not only benefit L’Oréal as a company but will also have a positive impact on consumers who rely on these brands for their skincare needs.
As the transaction is set to be finalized in the coming days, industry experts are eagerly awaiting the outcome. The acquisition of a stake in Galderma Group by L’Oréal is sure to shake up the beauty and skincare industry, leading to new advancements and opportunities for growth.
In conclusion, L’Oréal’s acquisition of a stake in Galderma Group marks a significant milestone for both companies. This strategic investment and partnership have the potential to revolutionize the skincare and aesthetics industry, paving the way for exciting new developments and innovations in the field. With L’Oréal’s expertise and Galderma’s knowledge, this collaboration is poised to bring about groundbreaking advancements that will benefit consumers worldwide.
