is digging deeper into the dermatological products market, taking a 10 percent stake in Galderma, the pure-play dermatology leader and among the largest in injectable aesthetics, which it originally co-founded. said Monday it had acquired the share in Galderma Group AG from Sunshine SwissCo AG, a consortium led by EQT, Abu Dhabi Investment Authority and Auba Investment Pte. Ltd.
Financial terms of the deal were not disclosed. said the transaction will be made via an off-market block trade with the EQT-led consortium. “ and the EQT-led consortium do not intend to act in concert,” L’Oréal said in a statement Monday morning.
L’Oréal said it will fund the deal with its available cash and credit lines. The closing is expected in a few days. Additionally, L’Oréal and Galderma have agreed to a new strategic scientific partnership, which will leverage Galderma’s expertise across a wide range of dermatological solutions and L’Oréal’s know-how in skin biology, diagnostic tools and evaluation methods.
Galderma was established in 1981 as a joint venture between L’Oréal and Nestlé. Galderma’s core brand, Cetaphil, dates back to 1947. In 2014, Nestlé acquired L’Oréal’s 50 percent stake in Galderma.
Five years later, EQT Partners investment group and a wholly owned subsidiary of the Abu Dhabi authority purchased the skin care company, then called Nestlé Skin Health, for an enterprise value of 10.2 billion Swiss francs, or $11.53 billion.
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