L'Oreal said today it will raise its stake in Swiss skin care firm Galderma to 20% with an acquisition from a group of major shareholders, a step which could earn the French company a bigger cut of profits from the injectable cosmetics market.
L'Oreal is buying the stake for an undisclosed sum from a consortium led by Swedish private equity firm EQT, which includes Abu Dhabi Investment Authority and Auba Investment Pte Ltd. The deal is due to close in the first quarter of 2026.
Galderma, which has a market capitalisation of over $48 billion according to LSEG data, was originally set up as a joint venture between Swiss consumer goods giant Nestle and L'Oreal before the latter sold its 50% stake in 2014.
L'Oreal's additional stake comes two months after it agreed to pay €4 billion for Kering's beauty business. It has also said it will study a potential investment in Armani.
"We are pleased with L'Oreal's increased investment, which affirms our direction and the meaningful value creation we expect in the years ahead," said Galderma CEO Flemming Ornskov.
Speaking to analysts in September, L'Oreal CFO Christophe Babule said the company was "quite happy" with the original Galderma stake it purchased last year.
Galderma listed an initial tranche of its stock in March 2024, and has so far floated more than half of it, according to LSEG data. The company's share price has tripled since that IPO.
L'Oreal said Galderma's board will consider nominating two non-independent directors from L'Oreal to replace the EQT-led consortium representatives at the 2026 annual general meeting.
L'Oreal has also invested in clinics in China and the US to learn more about the aesthetics business.
The French cosmetics company said it does not intend to further increase its Galderma stake.
