Galderma buys U.S. skincare firm Alastin ahead of potential Zurich IPO

Singapore's President Tony Tan Keng Yam shakes hands with Mexico's President Enrique Pena Nieto after delivering a speech to the media, during an official welcoming ceremony, at the National Palace in Mexico City
REUTERS/Henry Romero

LONDON, Nov 29 (Reuters) - Swiss dermatology company Galderma has bought California-based Alastin, a firm specialising in specialist skincare products, for an undisclosed price, Galderma Chief Executive Flemming Ornskov said.

Founded in 2015, Alastin develops clinically tested physician-dispensed anti-ageing products. While company financials remain undisclosed, Alastin has recorded a compound annual growth rate of 106% between 2016 and 2020, Galderma said in a statement.

The acquisition will sit in between Galderma’s aesthetics and consumer care divisions, Ornskov said, adding that the companies already collaborate around the growth market of anti-ageing injections and skin fillers.

As Galderma's first acquisition in the United States, the deal will boost its presence in the region. L’Oreal’s Skinceuticals brand is a main competitor to Alastin in consumer facial products, Ornskov added.

Zug-based Galderma, expected to be listed in an initial public offering next year, plans to help Alastin expand its reach and strengthen sales further in the U.S., before looking at opportunities for growth in Asia and Europe, Ornskov said.

Galderma's owner EQT is planning an IPO that could reach 22 billion dollars, the Financial Times reported this month.

"We have engaged banks to look at options including an IPO but have not made a decision on timing," Ornskov said, declining to comment on the company's potential valuation.

While sources familiar with the matter say an IPO is planned for Zurich, Ornskov said no final decision had been taken.

The Alastin acquisition is not related to the strategic decision on the listing, he added.

Ornskov said he aims to "continue Galderma's strong EBITDA (earnings) growth, invest in research and development and expand the portfolio". The company "scouts every corner of the world" for acquisitions, he added.

Galderma was carved out of Nestlé in 2019 and bought for 10.2 billion Swiss francs ($10.1 billion) by a consortium led by EQT, including Singapore’s GIC and the Abu Dhabi Investment Authority.

Reporting by Emma-Victoria Farr; editing by Clelia Oziel and Rachel Armstrong

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