Swiss skincare group Galderma raises $1 billion through private placement before IPO

Swiss skincare group Galderma has raised roughly $1 billion through a private placement of shares after plans for a stock market listing were delayed earlier in the year.

Management and shareholders have taken up part of the newly issued shares, with the remainder going to unnamed external investors, the company said in a statement.

Proceeds from the deal will be used to bolster Galderma’s balance sheet and expedite its growth, it said.

“This demonstrates the conviction that we all have in Galderma’s track record and bold ambition,” Michael Bauer, a partner at the company’s main shareholder EQT, said.

Galderma said it still plans to pursue an initial public offering (IPO), without giving any indication of timing.

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EQT has been preparing to take Galderma public for well over a year in a deal that could value the company at more than $20 billion.

But tough market conditions have forced the plans to be deferred, more recently in the spring.

Sources previously told Reuters that Galderma intended to raise a large amount of fresh capital through its IPO to pay down debt, leaving it exposed to market volatility.

EQT acquired Galderma – then Nestle’s Skin Health arm – in 2019 as part of an investor consortium that also included the Abu Dhabi Investment Authority (ADIA) and Canadian pension fund PSP Investments.

The dermatology group posted $3.8 billion in net sales in 2022 with earnings before interest, tax, depreciation and amortisation (EBITDA) of $791 million.

The company has more than $3.5 billion of debt maturing in 2026, according to Fitch Ratings.

Source: Investing.com

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