Top Stories
L’Oreal to acquire 10% stake in Swiss skin care company Galderma
Global Banking & Finance Review®
Company
ZURICH (Reuters) -French cosmetics company L’Oreal is to acquire a 10% stake in Swiss skin care firm Galderma from a group of major shareholders, the two companies said on Monday.
ZURICH (Reuters) -French cosmetics company L’Oreal is to acquire a 10% stake in Swiss skin care firm Galderma from a group of major shareholders, the two companies said on Monday.
The Swiss firm, originally set up as a joint venture between Nestle and L’Oreal, began trading on the Swiss stock exchange in late March, with its shares rising.
Galderma said L’Oreal 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’Oreal to work towards a new research and development collaboration in the form of a scientific partnership focused on complementary research projects.
“It marks an ambitious step for L’Oreal, 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’Oreal.
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’Oreal 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.
(Reporting by Dave Graham, Editing by Friederike Heine and Miranda Murray)
An acquisition is a corporate action in which one company purchases most or all of another company's shares to gain control of that company.
A partnership is a business arrangement in which two or more parties agree to cooperate to advance their mutual interests.
Research and development (R&D) refers to the activities companies undertake to innovate and introduce new products or services.
A stake in a company refers to ownership interest in that company, typically represented by shares of stock.
Explore more articles in the Top Stories category
