L’Oréal Group has announced the acquisition of a 10% stake in Galderma Group from Sunshine SwissCo, Abu Dhabi Investment Authority (ADIA), and Auba Investment. The financial details remain undisclosed.
Additionally, L’Oréal Group and Galderma will embark on a strategic scientific partnership, combining Galderma’s dermatological expertise with L’Oréal’s proficiency in skin biology and diagnostics.
L’Oréal’s investment confirms Galderma’s growth under CEO Flemming Ørnskov. Galderma — headquartered in Zug, Switzerland — is a leading pure-play dermatology company with a broad portfolio.
This includes dermo-cosmetics, dermatologic drugs and a range of injectable aesthetics such as hyaluronic acid fillers, neuromodulators and biostimulators. The company is renowned for its commitment to skin health and innovative dermatological solutions.
Galderma supports the transaction and the scientific partnership, welcoming L’Oréal as a long-term partner. L’Oréal Group will not seek board representation at Galderma and the transaction will be funded by L’Oréal’s cash and credit lines, with completion expected soon.
L’Oréal Group CEO Nicolas Hieronimus commented: “I am very pleased to announce this strategic investment and partnership with Galderma. This 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.”
Ørnskov commented: “We are on a journey of growth, innovation and leadership in the field of dermatology, powered by our integrated model. As we continue to deliver outstanding performance across our blockbuster platforms in attractive dermatology market segments, our commitment to progressing our current late-stage pipeline and advancing science and innovation remain a cornerstone of our approach.
“We are delighted to welcome L’Oréal as a new, long-term Galderma shareholder and see their investment as a sign of confidence in our strategy, track record and growth potential. We look forward to pursuing scientific partnership opportunities together, for the benefit of the customers, patients and consumers we serve across the globe every day.”
As reported, L’Oréal last week posted a +7.3% year-on-year increase in like-for-like (+7.5% reported) first-half FY2024 sales to €22.12 billion. The group reported positive momentum in all divisions, led by Dermatological Beauty growing at +16.4%.
The group is increasingly investing in a holistic approach to beauty and its investment in Galderma underscores the importance of its Dermatological Beauty business. This strategy blends diagnostic tools, high-performance topical products, consumer devices, and aesthetic treatments. The aim is to deliver enhanced performance by correcting, repairing, preventing, anticipating and intercepting the signs of skin ageing. ✈
