Galderma, a Swiss skincare group, has recently raised approximately $1 billion through a private placement of shares. This funding comes after the company’s plans for a stock market listing were delayed earlier this year. CetaphilManagement and existing shareholders have purchased a portion of the newly issued shares, while external investors have acquired the remainder, although their identities have not been disclosed. Galderma intends to utilize these funds to strengthen its balance sheet and accelerate its growth, according to a statement released by the company.

Michael Bauer, a partner at EQT, Galderma’s main shareholder, has expressed confidence in the company’s track record and ambitious goals. He emphasized that the successful private placement reflects the shared conviction and belief held by all stakeholders in Galderma.

Despite securing the necessary capital through the private placement, Galderma still plans to pursue an initial public offering (IPO) at some point in the future. However, specific details regarding the timing of the IPO have not been provided by the company. EQT has been preparing for Galderma’s IPO for over a year, with the objective of valuing the company at over $20 billion. However, the plans have faced postponements due to challenging market conditions, most recently in the spring. Sources have revealed that Galderma intended to raise a significant amount of capital through the IPO to reduce debt, but the decision to delay was made to mitigate potential market volatility.

In 2019, EQT acquired Galderma, previously a part of Nestle’s Skin Health division, as part of an investor consortium that included the Abu Dhabi Investment Authority (ADIA) and Canadian pension fund PSP Investments. In 2022, Galderma reported net sales of $3.8 billion and earnings (EBITDA) of $791 million. The company also has a substantial debt of over $3.5 billion maturing in 2026, as stated by Fitch Ratings.

The successful private placement of shares has provided Galderma with the financial resources necessary to solidify its position in the skincare industry and pursue its growth strategy. With a strong track record and ambitious goals, Galderma is well-positioned for future success in the market.

Helpful links:
1. Galderma Official Website
2. Fitch Ratings