L’Oréal Boosts Bet on Skin Fillers by Doubling Galderma Stake
(Bloomberg) — L’Oréal SA is doubling its stake in Galderma Group AG to 20%, as the French cosmetics and skincare company increases its bet on the maker of injectable fillers that rival Botox.
Neither L’Oréal nor the seller, an investor group led by private equity firm EQT AB, disclosed the financial details. A 10% stake is worth about 3.9 billion francs ($4.9 billion) based on Galderma’s closing price on Friday. The stock rose as much as 4.5% in Zurich before paring gains.
L’Oréal is stepping up its bet in a company it helped form over four decades ago as it looks for new sources of growth. Galderma competes in the fast-growing skin aesthetics market, with brands of injectable anti-wrinkle treatments like Relfydess and Alluzience. Its shares have more than doubled since L’Oréal said it had bought back into the company in August 2024.
After the transaction, Galderma will consider adding two L’Oréal representatives to its board, replacing directors from the EQT group. L’Oréal said Monday it wants to “solidify and extend” its partnership with the Swiss company, though it added that it is not planning to further increase its stake.
The stock fell as much as 2.3% in Paris.
“Aesthetics is a key adjacency to our core beauty business that we are keen to continue to explore,” Chief Executive Officer Nicolas Hieronimus said.
The transaction is the latest in a slew of deals by L’Oréal this year, such as an agreement struck in October to buy Kering SA’s beauty division which includes Creed perfume, in a transaction worth €4 billion ($4.66 billion).
Galderma brings products including dermo-cosmetics and injectable skin fillers, fillers amid a shift in the beauty market toward aesthetic intervention as people want to look younger for longer.
“Whilst L’Oréal still needs time to understand how the category works, it is a clear message that the company wants to play in procedures,” Jefferies analysts including Benjamin Jackson said in a note Monday, citing recent comments by Chief Financial Officer Christophe Babule.
Galderma was originally founded in 1981 as a joint venture between L’Oréal and Nestlé SA. The Swiss food group exchanged part of its holding in L’Oréal for the French company’s stake in Galderma in 2014.
Nestle then agreed to sell Galderma to a consortium led by Swedish buyout group EQT in 2019, following pressure by activist investors to focus its business on nutrition and health. Galderma was listed in Switzerland in March 2024.
EQT, the world’s second-biggest private equity firm based on capital raised, said the transaction with L’Oréal was struck at a premium, and that out of the total shares to be sold, about 6 million are attributable to EQT.
–With assistance from Lisa Pham and Michael Msika.
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