By Claude Leguilloux Published on 08/06/2024 at 09:15
Photo credit © L’Oréal / Mario Fourmy
(Boursier.com) — L’Oreal remained stable at EUR 385 on Tuesday after holding up well to market pressure yesterday, while the group announced the acquisition of a 10% stake in Galderma Group AG from Sunshine SwissCo AG (a consortium led by EQT), Abu Dhabi Investment Authority (ADIA) and Auba Investment Pte Ltd (all acting in concert as sellers), for an undisclosed amount. In addition, L’Oréal and Galderma have agreed to work towards a strategic scientific partnership that will leverage the undisputed expertise of both companies: Galderma’s across a wide range of dermatological solutions, and L’Oréal’s in skin biology, diagnostic tools and assessment methods.
Galderma fully supports this strategic partnership and is pleased to welcome the L’Oréal Group as a strong long-term partner.
L’Oréal will not be represented on Galderma’s board of directors and has accepted customary clauses for this type of investment as part of a shareholders’ agreement with Sunshine SwissCo AG.
The transaction will be implemented through an off-market transaction with EQT and the consortium. L’Oréal, EQT and the consortium do not intend to act in concert, while the transaction will be financed by L’Oréal’s available cash and a credit facility set up for this transaction. Among the latest broker opinions, Barclays maintains its recommendation at ‘overweight’, but adjusts its target from 485 to 472 euros. Redburn remains ‘neutral’ on the file with a target reduced to 410 euros.
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