Swiss Skincare Company Galderma Raises $1 Billion through Private Placement Before IPO
- Chaileedo Press
- Jun 27, 2023
- 2 min read
Galderma, a Swiss skincare company, has disclosed plans to issue new shares through a private placement that is expected to raise approximately $1 billion.
Galderma, a Switzerland-based dermatology company, has announced a private placement to issue new shares for raising approximately $1 billion. The placement will involve a group of investors, including current shareholders, new investors, and management.
The private placement is expected to be finalized in the upcoming weeks. Galderma plans to utilize the funds raised through the placement to reinforce its balance sheet and boost its organic growth momentum, which is driven by its distinctive integrated dermatology strategy.
Galderma is a Swiss pharmaceutical firm that specializes in skincare products and treatments for various dermatological conditions. Galderma was founded in 1981 as a joint venture between Nestlé and L'Oréal. In 2014, Nestlé acquired the remaining stakes in Galderma from L'Oréal. Later, in 2019, Nestlé sold Galderma for $10.2 billion to a consortium of investors, including the EQT VIII fund, Luxinva (a wholly owned subsidiary of Abu Dhabi Investment Authority), PSP Investments, and other institutional investors.
Galderma's performance for 2022 exceeded its expectations, with net sales reaching $3.76 billion with a year-on-year growth of 13.9% on a constant currency basis. Additionally, the company's profitability in 2022 surpassed its guidance, achieving a year-on-year Core EBITDA growth of 14.5% on a constant currency basis, which amounted to $791 million.
In early this March, EQT AB, the Swedish investment firm that owns Galderma, is reported to restart the IPO plan for Galderma. Galderma began preparations for an IPO over a year ago but had to delay its plans due to challenging equity markets in 2022.
EQT could aim to raise up to €3 billion ($3.2 billion) through an IPO, which would be the largest IPO of 2023. Sources familiar with the matter stated that Galderma could have a valuation of up to 20 billion Swiss francs if a deal is made.
While on 29 March, it is reported that EQT decided to delay the planned IPO of Galderma due to a crisis of confidence in the banking sector that has led to turbulence in global markets, according to a source with knowledge of the situation.
Galderma stated that the company still hold its intention to move forward with the planned IPO but did not provide any specific details regarding the timing of the offering.
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