Swiss pharmaceutical company Galderma, which specializes in dermatological treatments and skin care products, was formed in 1981 by L'Oréal and Nestlé before Nestlé bought back all the shares from L'Oréal in 2014, and then sold it for $10.2 billion to a consortium made up of EQT VIII fund, Luxinva (a wholly owned subsidiary of Abu Dhabi Investment Authority), PSP Investments, and other institutional investors.
Now L'Oreal wants back in, announcing on Monday that it made an agreement with Sunshine SwissCo AG, a consortium led by EQT, Abu Dhabi Investment Authoriyt, and Auba Investment Pte. Ltd to buy a 10% stake in the company.
While the amount L'Oreal paid was not disclosed, Reuters pegs it at $1.6 billion francs based on Galderma's current market cap of $15.93 billion.
Following the transaction, there are no planned changes to the Galderma Board of Directors and its governance.
Galderma's portfolio includes injectable aesthetics, dermatological skincare, and therapeutic dermatology. It has over 33 wholly-owned skin care affiliates, with brands that include Epiduo, Oracea, Clobex, Differin, Mirvaso, Rozex/MetroGel, Silkis/Vectical, Tri-Luma, Loceryl, Cetaphil, Metvix, Azzalure, Restylane, and Emervel.
In addition to the financial transaction, L'Oreal and Galderma also revealed that they signed a memorandum of understanding on a research and development collaboration, which includes a scientific partnership focused on complementary research projects, specifically around the consumer-focused segments of the dermatology and beauty markets.
“We are on a journey of growth, innovation and leadership in the field of dermatology, powered by our unique 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," Flemming Ørnskov, M.D., MPH, Chief Executive Officer of Galderma, said in a statement.
"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.”
(Image source: galderma.com)
