L’Oréal is doubling down on its expansion into the medical aesthetics sector, acquiring an additional 10% stake in Galderma Group AG. With this latest move, L’Oréal now owns 20% of the Swiss-based dermatology company, reinforcing its commitment to this high-growth industry.
Acquisition Details
The shares were purchased from a consortium led by EQT, which includes Sunshine SwissCo, ADIA, and Auba Investment. While the financial terms of the transaction were not disclosed, the acquisition will be finalized through an off-market block trade and funded using L’Oréal’s existing cash reserves and credit lines. Regulatory approvals are still pending, and the deal is expected to close by the first quarter of 2026.
Upon completion, L’Oréal will account for its increased stake in Galderma using the equity method. Additionally, Galderma’s board will review the nomination of two non-independent candidates put forward by L’Oréal at its 2026 annual general meeting (AGM).
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Strategic Objectives
L’Oréal’s decision to deepen its involvement with Galderma is part of a broader strategy to make a significant mark in the growing medical aesthetics market. The company emphasized that it intends to support Galderma’s current strategy under CEO Flemming Ørnskov and does not plan to seek a controlling position.
In a statement, L’Oréal noted that the deal reflects its desire to strengthen "strategic alignment with Galderma across science, innovation and long-term market development." This alignment is expected to help both companies leverage advancements in medical aesthetics, a sector adjacent to L’Oréal's core beauty and cosmetics business.
Conclusion
This increased stake signals L’Oréal’s commitment to expanding its footprint in the medical aesthetics space, an area it has identified as a significant growth opportunity. With regulatory approvals anticipated in the coming months, the move reinforces the company’s strategic focus on innovation and long-term market collaboration with Galderma.
