The L’Oréal Group has announced the conclusion of an agreement with the Swiss dermatology specialist Galderma. The two companies are coming together in a scientific partnership, which also includes the acquisition of a 10% stake in Galderma by the French giant.
The beauty giant L’Oréal is strengthening its presence in the booming dermatology market. The French group announced on Monday, July 5, that it had acquired 10% of the shares in Galderma.
As the world leader in dermatology, Galderma made headlines last March with its listing on the Zurich Stock Exchange. With a capitalization reaching 17 billion euros, the Swiss group is enhancing its development, which is expected to be bolstered by its association with L’Oréal.
Scientific Partnership
The French group announced it had acquired this 10% stake from Sunshine SwissCo AG, a consortium led by the Swedish investment fund EQT Partners – the owner of Galderma – as well as from Abu Dhabi Investment Authority and Auba Investment Pte, for an estimated amount of 1.7 billion euros.
The two companies have also signed a scientific partnership, according to a statement from Galderma. The pooling of their resources in the field of research and development aims to “accelerate innovation in dermatology“, particularly against “the signs of aging skin“.
“This partnership will also help us further explore synergies between injectable products and topical treatments,” said Nicolas Hieronimus, CEO of L’Oréal.
An Important Player in Dermatology
Based in Zug, in central Switzerland, Galderma builds its activity on dermocosmetic brands such as Cetaphil and Alostil, but also positions itself in the injectable aesthetics market.
The group’s laboratories have notably developed a competitor to Botox, called Azzalure. Galderma also markets medicinal treatments dedicated to skin diseases.
Today, the group employs 6,500 people worldwide and generates a turnover of 4.1 billion dollars.
The transaction with L’Oréal marks the French group’s return to Galderma’s capital. Indeed, the Swiss company was born in 1981 from a partnership between L’Oréal and the food giant Nestlé.
At the beginning of 2014, the cosmetics leader decided to sell its 50% stake to its partner.
Nestlé eventually sold all its shares to EQT Partners and the Abu Dhabi Investment Authority for 10.2 billion Swiss francs.
Reuniting in Capital
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Featured Photo : © Galderma
