L’Oréal doubles stake in Galderma to boost position in aesthetics

L’Oréal has increased its stake in Galderma by 10%. The beauty giant now owns 20% of Galderma’s share capital. L’Oréal says the investment bolsters its ambitions to participate in the fast-growing aesthetics market. 

“Aesthetics is a key adjacency to our core beauty business that we are keen to continue to explore. 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,” says Nicolas Hieronimus, CEO of L’Oréal. 

The deal was facilitated by a consortium led by EQT, which included Sunshine SwissCo, Abu Dhabi Investment Authority, and Auba Investment, all acting in coordination as sellers. The cost of the new stake is undisclosed. 

Based on the increased investment, Galderma’s board of directors will consider nominating two non-independent board candidates from L’Oréal. These will replace the consortium led by EQT, as of the 2026 Annual General Meeting.

L’Oréal announces that it is not contemplating further growing its stake after this investment.

Dermatology-led innovation

L’Oréal and Galderma announce that they will explore strengthening their existing scientific partnership. The two have a shared focus on developing innovations in skin care and skin health.

The global dermatology brand has expressed support for the transaction and recognizes L’Oréal as a strong long-term partner.

L’Oréal builds its presence in aesthetics. “We are pleased with L’Oréal’s increased investment, which affirms our direction and the meaningful value creation we expect in the years ahead. As we move into 2026, we remain fully focused on our Integrated Dermatology Strategy and on serving our customers, consumers, and patients,” says Flemming Ørnskov, CEO of Galderma. 

The transaction will be implemented through an off-market block trade with the EQT-led consortium. The previously concluded shareholder undertaking between L’Oréal and SSCO will be dissolved upon completion of the transaction.

The transaction will be funded with L’Oréal’s available cash and credit lines. The deal is expected to close by Q1-2026 and remains subject to customary regulatory approvals. Following the completion of the transaction, L’Oréal will consolidate its stake in Galderma under the equity method.

L’Oréal, the world’s largest beauty and personal care company, made an initial investment in Galderma in August 2024.

Investment increases 

The investment announcement coincides with other major business moves from L’Oréal in the personal care industry. 

Last week, the company said it would begin formal work on a possible investment in Armani “very soon.” L’Oréal’s CFO Christophe Babule told analysts in a fireside chat that it will “definitely” examine the opportunity to buy a 15% stake in Armani.

The French cosmetics company also invested €60 million (US$69.13 million) in its factory in Gauchy, France, enabling it to double its production capacity. L’Oréal said the investment is a response to the “strong growth of the perfume business internationally.”

Meanwhile, LVMH Luxury Ventures Fund acquired a minority stake in BDK Parfums, marking the first time the fragrance company has opened its capital to an external investor.