The move makes newly-branded Galderma the largest independent global dermatology company in the world.
Renowned institutional investors
The consortium behind the acquisition is made up of renowned institutional investors, including Swedish equity firm EQT, Canadian pension fund managers PSP Investments and wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) Luxinva.
Nestlé first entered into negotiations to sell-off its Nestlé Skin Health business back in May. The CHF 10.2bn (€9.35bn) transaction has now been completed following necessary approvals.
Nestlé Skin Health pulled in net sales of €2.5bn (CHF 2.8bn) in 2018 across its three units – prescription, aesthetics and consumer care – all set to be kept under the acquisition but re-focused on pureplay dermatology.
‘Highly attractive dermatology sector’
The consortium said Galderma would now be led into its next phase of growth and innovation by an “experienced management team and board”.
Dr. Flemming Ornskov had been appointed CEO, following executive positions at Shire and Bayer, and Thomas Dittrich (previously Shire and Amgen) appointed CFO.
Ornskov said the management and team at Nestlé Skin Health had done an “excellent job creating a high-growth, leading dermatology business”.
“I believe that Galderma, as a newly focused pureplay dermatology business, has outstanding prospects built on its existing quality portfolio, team and rich pipeline of innovation. I look forward to working with the talented Galderma team to further build on its success to date,” the new CEO said.
Nestlé Skin Health’s outgoing CEO Stuart Raetzman joined Galderma’s Advisory Board as a director, alongside Sheri McCoy (ex-Avon Products and Johnson & Johnson). The Board would be led by chairman Thomas Ebeling, former CEO of Novartis Pharma, Novartis Consumer Health and ProSiebenSat1Media.
The Galderma consortium said all appointed executives had “proven track records” in building sustainable and high-growth businesses in pharmaceutical and consumer industries.
International expansion, US & China focus
Galderma said it would continue to invest in innovation and commercial development, with a clear focus on international expansion.
“The new owners intend to advance the current direction taken by Galderma’s management and focus on accelerating growth further by building on the company’s leading market positions and brands in a sector benefiting from strong innovation and demographic trends.”
In particular, the company would continue to increase presence in the US and China.
Galderma would keep its headquarters in Switzerland.
