L’Oréal has acquired a slice of the Swiss skincare firm Galderma from a consortium led by the Swedish private equity group EQT.
A 10% stake in Galderma, which was bought for an undisclosed fee, will go to L’Oréal - the two firms confirmed on Monday.
"I am very pleased to announce this strategic investment and partnership with Galderma," said Nicolas Hieronimus, CEO of L’Oréal.
"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."
Galderma was originally set up by L'Oréal and Swiss food group Nestlé in 1981.
In 2014, Nestlé bought out its partner’s 50% stake, exchanging it for part of its own holding in L’Oréal.
In 2019, Nestlé then sold Galderma to private equity group EQT, who took the company public in March this year.
L'Oréal's return to Galderma suggests it is moving its focus away from traditional cosmetics towards more cutting-edge beauty technology.
The Swiss firm offers a broad portfolio of dermo-cosmetics, dermatologic drugs, and hyaluronic acid fillers - among other products.
"L'Oréal and Galderma have agreed to work towards a strategic scientific partnership that will leverage the undisputed expertise of both companies," said the French group in a statement.
Galderma, meanwhile, underlined that "advancing science and innovation" remains a "cornerstone" of its strategy.
L'Oréal said it will not seek to be represented at Galderma's board of directors.
Shares in L'Oréal were down around 0.34% at 13h15 CEST Monday, amid broader downturns in global stock markets.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
