Nestle takes full control of Galderma Pharma

19 February 2014

The boards of Switzerland-based Nestle (NESN: VX), the world’s largest food company, and French cosmetics firm L’Oreal have approved a strategic transaction for both companies under which L’Oreal will buy 48.5 million of its own shares (8% of its share capital) from Nestle. This buyback will be financed:

Partially through the disposal by L’Oreal to Nestle of its 50% stake in Swiss dermatology pharmaceuticals company Galderma Pharma (a 50/50 joint venture between the two companies) for an enterprise value of 3.1 billion euros ($4.24 billion) - 2.6 billion euros of equity value - paid by Nestle in L’Oreal shares (21.2 million shares)
For the remainder, corresponding to 27.3 million L’Oreal shares held by Nestle, in cash for an amount of 3.4 billion euros

The transaction will be accretive by more than 5% on L’Oreal’s recurring earnings per share on a full year basis. The buyback will be exclusively financed with L’Oreal’s available cash and through the issuance of commercial paper. It will not require the disposal of Sanofi shares held by L’Oreal.

This article is accessible to registered users, to continue reading please register for free. A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.

Try before you buy

Free

7 day trial access

Take a Free Trial

All the news that moves the needle in pharma and biotech
Exclusive features, podcasts, interviews, data analyses and commentary from our global network of life sciences reporters.
Receive The Pharma Letter daily news bulletin, free forever.

Become a subscriber

£820

Or £77 per month

Subscribe Now

Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
Daily roundup of key events in pharma and biotech.
Monthly in-depth briefings on Boardroom appointments and M&A news.
Choose from a cost-effective annual package or a flexible monthly subscription

The Pharma Letter is an extremely useful and valuable Life Sciences service that brings together a daily update on performance people and products. It’s part of the key information for keeping me informed

Chairman, Sanofi Aventis UK