L’Oréal strengthens its position in medical aesthetics by doubling its stake in Galderma

Financial terms were not disclosed, though Galderma’s latest market valuation places a 10% stake at roughly 3.9 billion Swiss francs ($4.9 billion). Galderma shares initially climbed nearly 4.5% in Zurich before trimming gains, while L’Oréal’s stock slipped as much as 2.3% in Paris.

A strategic step forward in a long-standing partnership

More than four decades after helping to create Galderma, L’Oréal is reaffirming its interest in a company that has become a key player in injectable aesthetic solutions. Galderma competes in one of the beauty industry’s fastest-growing categories, with leading brands such as Relfydess and Alluzience. Since L’Oréal reentered Galderma’s capital in August 2024, the Swiss group’s share price has more than doubled.

Under the new agreement, Galderma may welcome two L’Oréal-appointed board members, replacing directors linked to EQT. L’Oréal stressed that while it intends to strengthen and expand its collaboration with Galderma, it does not currently plan to raise its ownership further.

An acquisition strategy aligned with L’Oréal’s ambitions

“Aesthetics is a natural adjacency to our core beauty expertise and a field we are determined to explore further,” said Nicolas Hieronimus, Chief Executive Officer of L’Oréal.

The move caps a year of notable M&A activity for the group, including the €4 billion acquisition of Kering’s beauty division—home to the Creed fragrance brand—announced in October.

Galderma: A critical asset in a transforming beauty landscape

As demand for non-surgical aesthetic procedures accelerates and consumers increasingly seek long-term youth-enhancing solutions, Galderma’s portfolio—spanning dermo-cosmetics and injectable fillers—positions the company at the forefront of a high-growth segment.

Analysts at Jefferies noted that while L’Oréal is still building expertise in this category, the increased stake signals a clear intention to participate more directly in aesthetic procedures.

A notable corporate trajectory

Established in 1981 as a joint venture between L’Oréal and Nestlé, Galderma became fully owned by the Swiss food giant in 2014 through an asset swap. Nestlé later divested the business in 2019 to a consortium led by EQT, responding to pressure from activist shareholders to refocus on nutrition and health. Galderma went public in Switzerland in March 2024.

EQT - now the world’s second-largest private equity firm by capital raised - confirmed that the transaction with L’Oréal was completed at a premium, with approximately six million shares from its own allocation included in the sale.

Sophie Stevenard