L'Oréal, the renowned cosmetics and beauty products giant, announced on Monday the acquisition of a 10% stake in the dermatology company Galderma Group AG for an undisclosed amount.
The stake is being acquired from Sunshine SwissCo AG, a consortium led by EQT, Abu Dhabi Investment Authority (ADIA), and Auba Investment Pte. Ltd., all coordinating as the sellers.
The transaction will be executed through an off-market block trade with the EQT-led consortium. Notably, L'Oréal and the EQT-led consortium have stated they do not intend to act in concert.
L'Oréal plans to finance the purchase with available cash and credit lines, with the transaction expected to close in the coming days.
Furthermore, L'Oréal and Galderma have established a strategic scientific partnership to collaborate on Galderma's extensive range of dermatological solutions, leveraging L'Oréal's expertise in skin biology, diagnostic tools, and evaluation methods.
L'Oréal has communicated that it will not seek representation on Galderma's Board of Directors, and has agreed to standard provisions for an investment of this nature as part of a shareholders' agreement with Sunshine SwissCo AG.
Galderma, which boasts a comprehensive portfolio of dermo-cosmetics, dermatologic drugs, and top-tier hyaluronic acid (HA) fillers, neuromodulators, and biostimulators, is fully supportive of the investment and the strategic scientific partnership.
