French cosmetics company L'Oréal is to acquire a 10% stake in Swiss skin care firm Galderma from a group of major shareholders, the two companies have said.
The Swiss firm, originally set up as a joint venture between Nestlé and L'Oréal, began trading on the Swiss stock exchange in late March, with its shares rising.
Sunshine SwissCo
Galderma said L'Oréal would acquire the 10% stake for an undisclosed premium from Sunshine SwissCo AG - a consortium led by Swedish private equity firm EQT - Abu Dhabi Investment Authority (ADIA) and Auba Investment Pte. Ltd.
Galderma said it had signed a memorandum of understanding with L'Oréal to work towards a new research and development collaboration in the form of a scientific partnership focused on complementary research projects.
An Ambitious Step
"It marks an ambitious step for L'Oréal, and true to our mantra of 'seize what is starting,' it allows us to explore partnering in the fast-growing aesthetics market, a key adjacency to our own pure beauty play," said Nicolas Hieronimus, chief executive officer of L'Oréal.
"We fully support Galderma's management and its strategy as a leading dermatology pure player, respect its independence and are very confident in its long-term growth potential."
L'Oréal said it will not seek to be represented at Galderma's board of directors and has agreed to customary provisions for an investment of this type as part of a shareholders' agreement with Sunshine SwissCo.
In a statement, L'Oréal added that Galderma is 'fully supportive of the transaction and of the strategic scientific partnership and welcomes L’Oréal as a strong long-term partner.'
