L’Oréal is making significant strides in the aesthetics sector by acquiring an additional 10 percent stake in Galderma Group AG, a leading company in dermatology and injectable aesthetics. L’Oréal, which initially co-founded Galderma, now holds a total of 20 percent of the company after this recent purchase was made from a consortium that includes EQT, Sunshine SwissCo, the Abu Dhabi Investment Authority, and Auba Investment Pte Ltd. While the financial details of the acquisition remain undisclosed, this move highlights L’Oréal’s ongoing commitment to expanding its footprint in the aesthetic industry.
L’Oréal’s CEO, Nicolas Hieronimus, emphasized the importance of aesthetics as a crucial area adjacent to their core beauty business. He noted that the company’s initial investment in Galderma has yielded positive results, prompting L’Oréal to deepen its partnership. This acquisition reflects the growing trend in the beauty industry where companies are increasingly blending aesthetics with dermatological solutions, marking a strategic shift in how beauty brands approach consumer needs.
Galderma, now backed by L’Oréal’s increased stake, has expressed its support for the transaction, recognizing L’Oréal as a reliable long-term partner. The transaction is structured as an off-market block trade and is expected to finalize by the first quarter of 2026. Importantly, L’Oréal plans to fund this acquisition through its available cash and credit lines, ensuring a stable financial approach while maintaining Galderma’s strategic independence under CEO Flemming Ørnskov.
Additionally, the partnership between L’Oréal and Galderma is set to deepen following this investment. Both companies will explore reinforcing their scientific collaboration initiated in August 2024, leveraging Galderma’s expertise in dermatological solutions for injectable aesthetics, alongside L’Oréal’s strengths in skin biology and diagnostic evaluation methods. This strategic synergy aims to explore the interplay between injectables and topical treatments, tapping into the growing consumer interest in innovative skincare solutions.
As L’Oréal increases its involvement, there could also be changes in Galderma’s governance. The board of directors may consider appointing two non-independent board candidates from L’Oréal to replace members of the EQT-led consortium when the 2026 annual general meeting takes place. These changes signify a shift towards a more integrated partnership as L’Oréal continues to shape the future direction of Galderma.
Galderma’s rich history adds depth to this evolving partnership. Established in 1981 as a joint venture between L’Oréal and Nestlé, its flagship brand, Cetaphil, has been a staple in skincare since 1947. After Nestlé acquired L’Oréal’s stake in Galderma in 2014, the investment group EQT Partners and the Abu Dhabi Investment Authority purchased the company in 2019, rebranding it back to Galderma. The recent IPO in March 2024 marked another significant milestone, making it the largest in Switzerland since 2017, and highlighting the growing market interest in dermatology and aesthetics as both L’Oréal and Galderma pave the way for innovative advancements in the beauty industry.
