L’Oréal is acquiring a significant portion of EQT’s stake in Galderma, effectively doubling its ownership in the dermatology-focused pharmaceutical subsidiary. The move underscores L’Oréal’s long-term commitment to expanding its presence in the specialty skincare and medical aesthetics market.
- L’Oréal is acquiring shares from EQT to increase its stake in Galderma to approximately 85%
- Galderma generates over €2.5 billion in annual revenue and specializes in dermatology and aesthetic treatments
- The transaction strengthens L’Oréal’s control and enables deeper operational integration
- LRLCY and GALDF saw gains of 1.8% and 2.3% respectively in early trading
- The move reflects strategic focus on high-growth markets and innovation in medical aesthetics
- Expected synergies may improve profitability and R&D efficiency across the combined business
L’Oréal has announced a major strategic transaction to increase its ownership in Galderma, the dermatology and medical aesthetics division it co-founded, by acquiring shares directly from EQT Partners. The deal, which involves the purchase of a substantial equity stake, will raise L’Oréal’s ownership in Galderma to approximately 85%, up from around 42% prior to the transaction. While the exact financial value of the share buy was not disclosed, the move reflects a clear intention to strengthen control and accelerate Galderma’s global expansion, particularly in high-growth markets such as Asia-Pacific and Latin America. The transaction marks a pivotal shift in Galderma’s ownership structure, consolidating control under L’Oréal and paving the way for deeper integration of R&D, production, and commercial operations. With Galderma generating over €2.5 billion in annual revenue and leading in prescription dermatology and aesthetic treatments, the expanded stake positions L’Oréal to leverage synergies between its consumer skincare brands and Galderma’s medical-grade product portfolio. Market reaction has been positive, with LRLCY (L’Oréal’s ADR) rising 1.8% in early trading, while GALDF (Galderma’s global depository receipts) gained 2.3%. Investors are interpreting the move as a vote of confidence in Galderma’s innovation pipeline and long-term profitability, especially as demand for dermatological treatments and non-surgical aesthetic procedures continues to rise. The acquisition also signals a broader trend of conglomerates deepening their investments in specialized healthcare divisions within the consumer healthcare space. The strategic shift could influence future regulatory scrutiny, particularly given the companies’ global reach and the sensitive nature of medical skincare products. Nonetheless, L’Oréal’s move is expected to enhance its competitive edge in the premium skincare segment and reinforce its role as a leader in science-driven beauty solutions.