L'Oréal Expands Commitment in the Rapidly Growing Aesthetics Market

L'Oréal has acquired a 10 percent stake in the recently listed dermatology company Galderma, marking the French beauty giant's re-entry into the injectable market after a decade focused on traditional cosmetics. The stake was purchased for an undisclosed amount from a consortium led by the Swedish private equity group EQT. This consortium has been the owner of Galderma for five years and will remain a shareholder. Nicolas Hieronimus, CEO of L'Oréal, stated that the deal allows the company to explore partnerships in the rapidly growing aesthetics market, an important area alongside the traditional beauty business. Galderma, which offers products ranging from acne treatments to aesthetic injectables and fillers for wrinkle smoothing and facial feature alterations, has established a scientific partnership with L'Oréal to develop anti-aging technologies. Analysts estimate that the stake is valued at €1.7 billion. Galderma, headquartered in Zug, Switzerland, was founded in 1981 as a joint venture between Nestlé and L'Oréal. In 2014, Nestlé acquired L'Oréal’s 50 percent stake. In 2019, the company was bought by the consortium led by EQT for $10 billion. "L'Oréal is moving towards beauty-tech devices and now injectables, marking a significant shift from traditional cosmetics, possibly indicating a future direction for its beauty portfolio," commented Jefferies analyst Molly Wylenzek. She added that L'Oréal likely acquired the stake with the intention of increasing its ownership and control over time. L'Oréal shares fell by 1 percent on Monday morning amid broader global stock market turbulence. The deal followed Galderma investors, including the Abu Dhabi Investment Authority and Singapore's GIC, taking the company public in Switzerland in March. The IPO of Galderma raised approximately CHF 2.3 billion at a price of CHF 53 per share. Much of the proceeds from the IPO were used to repay and refinance Galderma's debt. Since then, the company's shares have risen to around CHF 67. Galderma's market value stands at approximately CHF 16 billion.