The firm’s investment in Galderma signals a pivot towards injectables and more cutting-edge beauty technology.
Shares in L’Oréal slipped almost 1.5% during morning trading in Paris after the firm announced that it would double its stake in Swiss skincare firm Galderma.
Galderma shares had risen almost 2% in Zurich by around 11:00 CET, dropping from a more dramatic high seen earlier in the day.
L’Oréal will purchase 24 million extra shares in the Swiss firm, bringing its ownership to 20%, from a consortium led by the Swedish private equity group EQT.
The purchase price is undisclosed and the deal is expected to close in the first quarter of 2026. Galderma will also consider nominating two L’Oréal representatives to its board, replacing the consortium led by EQT.
“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,” said L’Oréal CEO Nicolas Hieronimus.
The firm stressed that it did not plan to increase its stake further.
Flemming Ørnskov, CEO of Galderma, said: “Galderma continues to deliver impressive growth, strong innovation and category leadership across its broad, science-based dermatology portfolio…We are pleased with L’Oréal’s increased investment, which affirms our direction and the meaningful value creation we expect in the years ahead.”
A shift towards innovation
Galderma was originally set up by L'Oréal and Swiss food group Nestlé in 1981. In 2014, Nestlé bought out its partner’s 50% stake, and it then sold Galderma to private equity group EQT in 2019.
Last year, L’Oréal then acquired a 10% stake in Galderma, estimated at €1.7 billion.
The move notably signalled a shift towards more cutting-edge beauty technology, as Galderma is focused on the skin aesthetics market, offering a broad portfolio of dermo-cosmetics, dermatologic drugs, and hyaluronic acid fillers, among other products.
“Aesthetics is a key adjacency to our core beauty business that we are keen to continue to explore,” said CEO of L’Oréal Nicolas Hieronimus on Monday.
L’Oréal’s dermatological portfolio already includes major brands such as La Roche-Posay and CeraVe, brands boosted by an increased interest in science-driven skincare promoted on social media.
The fresh deal with Galderma is the latest in a series of acquisitions made by the French beauty giant in recent years. In October, L’Oréal announced it would buy Kering’s struggling beauty business, including perfume maker House of Creed. L'Oréal will also enter into 50-year licensing arrangements for some of Kering’s most iconic brands, specifically Gucci, Bottega Veneta, and Balenciaga.
Other brands that L’Oréal has added to its portfolio in recent years include UK skincare brand Medik8 and Australian soapmaker Aesop.
