L’Oréal has upped its strategic investment in Galderma Group AG to 20%, acquiring an additional 10% of the dermatology brands and services company.
The French beauty giant acquired the extra stake for an undisclosed amount from a consortium of shareholders led by EQT, which includes Sunshine SwissCo GmbH (SSCO), Abu Dhabi Investment Authority (ADIA) and Auba Investment Pte. Ltd.
This new transaction brings L’Oréal’s ownership of Galderma’s share capital to 20% – the beauty giant acquired its first 10% stake in the aesthetics company in August 2024.
The deal is due to close in the first quarter of 2026 – subject to customary regulatory approvals.
Galderma is a Switzerland-based company that specialises in injectable aesthetics, dermatological skin care and therapeutic dermatology.
Brands in its portfolio include hyaluronic acid filler Restylane and sensitive skin care range Cetaphil.
L’Oréal’s increased investment in Galderma confirms “the solid growth journey that the company has embarked on”, read a statement from L’Oréal.
It also “reaffirms” the beauty giant’s ambitions to participate in the fast-growing aesthetics market.
“Aesthetics is a key adjacency to our core beauty business that we are keen to continue to explore,” said Nicolas Hieronimus, CEO of L’Oréal.
“Our initial strategic investment made in 2024 in Galderma has proven very successful, and therefore we are eager to solidify and extend the partnership further.”
As part of the deal, Galderma’s board of directors will consider nominating two non-independent board candidates from L’Oréal as part of the transaction, replacing the consortium led by EQT, as of the 2026 Annual General Meeting.
The transaction will be implemented by way of an off-market block trade with the EQT-led consortium.
L’Oréal and the EQT-led consortium have agreed to customary provisions for an investment of this type.
The previously concluded shareholder undertaking between L’Oréal and SSCO will be dissolved upon completion of the transaction.
The transaction will be funded with L’Oréal’s available cash and credit lines, and following completion, the beauty giant will consolidate its stake in Galderma under the equity method.
L’Oréal has been expanding its portfolio this year, having snapped up a majority stake in premium skin care player Medik8 and professional hair care brand Color Wow.
Plus, signing a blockbuster €4bn deal with Kering to acquire the luxury fashion group’s beauty business.
This deal also includes the rights to enter into a 50-year exclusive license for the creation, development, and distribution of fragrance and beauty products for Gucci.
L’Oréal is also inching towards a potential acquisition of the late Giorgio Armani’s beauty empire.