In a bold move that’s set to shake up the beauty and skincare industry, L’Oreal is doubling down on its investment in Galderma, raising its stake to a significant 20%. But here’s where it gets controversial: is this a strategic masterstroke or a risky gamble in the fast-evolving world of dermatological beauty? Let’s dive in.
Published on December 8, 2025, this development marks L’Oreal’s latest push into the skincare drug market, a sector that’s booming with potential. The French cosmetics giant is acquiring 24 million shares from an investor group led by private equity powerhouse EQT AB, though the exact purchase price remains a closely guarded secret. As part of the deal, Galderma is expected to welcome two L’Oreal representatives onto its board, replacing directors from the EQT group. This shift underscores L’Oreal’s growing influence in the company.
To put this into perspective, based on Galderma’s closing price of 162.80 Swiss francs on Friday, a 10% stake is valued at approximately 3.9 billion francs ($4.9 billion). That’s no small change, and it highlights just how much L’Oreal is betting on the future of skincare.
This isn’t L’Oreal’s first foray into expanding its dermatological portfolio. The company recently snapped up South Korean brand Dr. G and secured a majority stake in the UK’s Medik8, signaling its ambition to dominate the beauty-meets-healthcare space. But why the sudden focus on skincare drugs? The answer lies in the sector’s explosive growth, where beauty and science increasingly intersect.
And this is the part most people miss: Galderma’s origins are deeply intertwined with L’Oreal’s history. Founded in 1981 as a joint venture between L’Oreal and Nestle SA, the Swiss skincare company has been a key player in dermo-cosmetics, prescription drugs, and injectable skin fillers. In 2014, Nestle swapped part of its L’Oreal holdings for the French company’s stake in Galderma. Fast forward to 2019, and Nestle sold Galderma to a consortium led by EQT, as part of its pivot toward nutrition and health under pressure from activist investors. Galderma went public in Switzerland in 2024, setting the stage for L’Oreal’s latest move.
EQT, the world’s second-largest private equity firm by capital raised, confirmed the sale but kept the price under wraps. It did, however, reveal that the transaction was executed at a premium and that approximately 6 million of the shares sold were attributable to EQT. Is this premium a sign of Galderma’s untapped potential, or is L’Oreal overpaying for a slice of the pie? That’s a question worth debating.
As L’Oreal continues to expand its footprint in the dermatological beauty space, one thing is clear: the line between cosmetics and healthcare is blurring faster than ever. But is this a trend that will redefine the industry, or a bubble waiting to burst? We’d love to hear your thoughts in the comments below. Are you bullish on L’Oreal’s strategy, or do you think they’re spreading themselves too thin? Let’s start the conversation!
