L'Oreal to buy 10 percent stake in dermatology firm Galderma for undisclosed terms

Cosmetics and beauty products giant L'Oreal Co. (LRLCY.PK) announced Monday the acquisition of a 10% stake in dermatology company Galderma Group AG for a non-disclosed amount.

The stake is being acquired from Sunshine SwissCo AG, a consortium led by EQT, Abu Dhabi Investment Authority (ADIA), Auba Investment Pte. Ltd., all acting in coordination as sellers.

The deal will be implemented by way of an off-market block trade with the EQT-led consortium. L'Oréal and the EQT-led consortium do not intend to act in concert.

L'Oreal plans to fund the purchase with available cash and credit lines, and closing is expected to be completed in the coming days.

In addition, L'Oreal and Galderma have agreed to a strategic scientific partnership to work on Galderma's broad range of dermatological solutions, and L'Oréal's expertise in skin biology, diagnostic tools and evaluation methods.

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 entered into with Sunshine SwissCo AG.

Galderma, which offers a broad portfolio of dermo-cosmetics, dermatologic drugs, and best-in-class hyaluronic acid (HA) fillers, neuromodulators and biostimulators, is fully supportive of the deal and of the strategic scientific partnership.(DPA)