Key Takeaways:
- L’Oréal’s acquisition of a 10% stake in Galderma marks its re-entry into the dermatological market.
- This move will provide L’Oréal with access to the growing market for injectable cosmetics.
- The acquisition is part of L’Oréal’s strategy to expand its product portfolio and target new consumer segments.
Bern/Paris, August 5 (FinanceFlashNews) – French cosmetics giant L’Oréal has acquired a 10% stake in Swiss-based Galderma, a company specializing in dermatological products. This move will provide the French company with greater access to the lucrative injectable cosmetics market.
Galderma was originally a joint venture between L’Oréal and Swiss food giant Nestlé. However, the French company sold its 50% stake to Nestlé in the summer of 2014. Five years later, investors purchased Galderma from Nestlé.
L’Oréal will now acquire a 10% stake in Galderma from a consortium led by Swedish investment firm EQT, along with the Abu Dhabi Investment Authority (ADIA) and Auba Investment. While the value of the deal has not been disclosed, based on Friday’s closing price, the market value of the stake is estimated at 1.6 billion Swiss francs (1.7 billion euros).
Although this stake represents a small portion of the sixth-largest cosmetics company in Europe, it will allow L’Oréal to tap into the lucrative and rapidly growing market for injectable anti-wrinkle products, such as Botox.
