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As IPOs Heat Up, Galderma Plans to Go Public

PARIS — Galderma Group AG intends to launch an initial public offering on the SIX Swiss Exchange in the next few weeks to help bolster its next phase of growth, the company said Wednesday.

Through the transaction, the Zug, Switzerland-based maker of dermatology products hopes to raise $2.3 billion to strengthen its balance sheet by repaying and refinancing debt, Galderma said in a statement.

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IPOs are heating up in the beauty space as stock markets rally and interest-rate rises mitigate. Galderma’s news comes two days after Douglas Group said it plans to go public as early as this month, while Puig is mulling an IPO as part of strategic options for the future.

Dermatological beauty is among the most quickly expanding categories of the hot skin care market. Galderma called dermatology the fastest-growing “self care” market and said within that, it has leading positions in injectable aesthetics, dermatological skin care and therapeutic dermatology.

Inside a Galderma laboratory.
Inside a Galderma laboratory.

“Today marks the next step in our growth journey as the global dermatological category leader,” Flemming Ørnskov, chief executive officer of Galderma, said in the statement. “Since becoming an independent company in 2019, we have built a scalable integrated platform and established the foundation for our strong sustainable growth in attractive dermatology markets.

“With a proven strategy and track record of strong financial performance, Galderma aims to maintain consistent above-market growth and attractive margin expansion in the mid-term, as we continue to drive penetration and expansion of our portfolio for the patients, consumers and healthcare professionals we serve,” he said.

In 2023, Galderma generated sales of $4.08 billion, up 8.5 percent on a constant-currency basis year-on-year. For 2024, the group expects its sales to gain 7 percent to 10 percent at constant exchange versus 2023.

Galderma was established in 1981 as a joint venture between L’Oréal and Nestlé. Galderma’s core brand, Cetaphil, dates back to 1947.

In 2014, Nestlé acquired L’Oréal’s 50 percent stake in Galderma. Five years later, EQT Partners investment group and a wholly owned subsidiary of the Abu Dhabi Investment authority purchased the skin care company, then called Nestlé Skin Health, for an enterprise value of 10.2 billion Swiss francs, or $11.53 billion. Afterward, the group was rebranded as Galderma again.

Galderma today is present in more than 90 countries and counts 6,500 employees worldwide. Its brand include Actinica, Benzac, Azzalure, Differin and Dysport.

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