L’Oréal, the French cosmetics giant, has announced the acquisition of a 10% stake in Swiss skincare company Galderma. This move marks L’Oréal’s re-entry into the injectables market, a sector experiencing significant growth. The transaction, made for an undisclosed premium, was sealed with Sunshine SwissCo AG, a consortium led by EQT, the Abu Dhabi Investment Authority (ADIA), and Auba Investment Pte. Ltd.
Galderma, which was once a joint venture between Nestlé and L’Oréal, saw its shares surge by over 7% following the news, bringing its market value close to 16 billion Swiss francs. On the other hand, L’Oréal’s shares saw a minor dip of around 1%.
Despite the relatively small size of the stake—valued at approximately 1.6 billion Swiss francs—the acquisition is a strategic shift for L’Oréal, giving it a foothold in the lucrative market of injectables such as fillers and neuromodulators like Botox. Galderma’s injectables division is a major revenue driver, accounting for about half of the company’s income.
The two companies have also signed a memorandum of understanding to collaborate on research and development, aiming to jointly create new products that will benefit both portfolios. However, L’Oréal will not take a seat on Galderma’s board to maintain a clear distinction in their business activities. The companies are direct competitors in the skincare sector, with Galderma’s Cetaphil and L’Oréal’s CeraVe among the popular brands.
L’Oréal’s dermatological beauty division, which includes brands like La Roche-Posay, has seen robust growth in recent years, partly driven by heightened consumer interest in science-based skincare post-pandemic. However, the pace of growth has slowed, with the division recording a 10.5% increase in the second quarter, missing analysts’ expectations.
