EQT exits Galderma Group in full

A consortium led by EQT AB has fully exited its stake in Galderma Group AG, concluding a multi-year investment that generated a return exceeding four times the initial capital. The group, which included the Abu Dhabi Investment Authority (ADIA) and Auba Investment Pte (backed by Singapore's GIC), sold the remaining 14.3% of the Swiss skincare company in a 4.89 billion Swiss franc ($6.3 billion) share sale, marking the final phase of its exit strategy. The transaction, expanded twice due to strong investor demand, brought total proceeds for the three shareholders to over 20 billion francs since acquiring Galderma from Nestlé SA in 2019 for 10.2 billion francs, including debt.

Galderma's public market performance has been a key driver of the exit's success. The company's shares surged 180% following its March 2024 IPO, supported by robust earnings and demand for products like Cetaphil and Nemluvio. Prior to the recent sale, the shareholders had gradually reduced their holdings through the IPO, follow-on placements, and a 20% stake sold to L'Oréal SA. The latest transaction, executed via an accelerated bookbuilding process, involved major banks including Goldman Sachs, Morgan Stanley, and UBS. While Galderma's shares dipped slightly post-sale, they remained above the offering price of €143.75. The exit underscores a successful private equity investment cycle, leveraging strategic divestments and strong market conditions to maximize returns.