Private equity firm EQT is seeking to offload $1.2bn of shares in Swiss skincare firm Galderma Group.
The news, which was reported earlier this week by Bloomberg, will have EQT place around 13 million shares, making up about 5.5%, with investors. The sale is being coordinated by Goldman Sachs, Morgan Stanley and UBS.
The EQT website lists Galderma amongst its current portfolio. It calls the firm a ‘leading global skincare company’, which is ‘advancing dermatology for every skin story’.
Despite this, it looks like EQT is looking to severely reduce its stake in the company, with reports in recent weeks that L’Oréal has bought from it a 10% stake.
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L’Oréal said in a statement: “Galderma is fully supportive of the transaction and of the strategic scientific partnership and welcomes L’Oréal as a strong long-term partner. L’Oréal 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.”
It added: “The transaction 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. The transaction will be funded with L’Oréal’s available cash and credit lines, and closing is expected to be completed in the coming days.”
What may be good news for L’Oréal and EQT has left a blemish on the face of Galderma, which saw its stock falls 3.6% this week after the news broke. Dow Jones reported that the public offering of Galderma, which happened earlier this year, was the largest IPO in Switzerland so far in 2024.
Since that time, wrote Bloomberg, the share price of Galderma has jumped 52%. The firm has reported a 12.4% jump in Q1 sales this week, according to Reuters. Turnover growth is also said to jump, too, with the firm saying it expected to see a 7-10% increase this year.
