EQT-backed Galderma sells Bübchen

Harriet Matthews
05 May 2020

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Galderma (formerly known as Nestle Skin Health), a portfolio company of EQT, has sold its baby skincare subsidiary Bübchen to Dallmann's Pharma, a wholly owned subsidiary of Germany-based confectionery group Katjes.

The acquisition was financed via the company's balance sheet and with debt from UniCredit.

A source familiar with the situation told Unquote that the Credit Suisse-led process took eight weeks to complete. The source added that the process drew interest from Germany-based mid-cap pharmaceutical and APC trade buyers, as well as private equity investors with portfolio companies in the same sector.

The exit is part of a strategic repositioning of Galderma's portfolio, according to a statement. The sale of Bübchen is the first spin-out from the company since EQT and the Abu Dhabi Investment Authority acquired Nestlé Skin Health in May 2019 in a deal valued at CHF 10.2bn (approximately €9bn). EQT deployed equity via EQT VIII, which held a final close in February 2018 on €10.75bn and is now 70% deployed.

EQT announced in April 2020 that fundraising for its latest vehicle is likely to be delayed due to the coronavirus outbreak, as reported.

Company
Bübchen is a consumer brand that produces skincare products for babies, including creams, oils and shampoo. Its products are sold in retailers across Germany.

Based in Soest, the company reported 2019 turnover of €50m and employs 100 staff. Of the company's revenues, 70-80% come from within Germany, according to the same source.

People
EQT – Michael Bauer (global head, healthcare).
Katjes – Tobias Bachmüller (managing partner).

Advisers
Acquirer – WMCF (corporate finance); Orth Kluth Rechtsanwälte (legal); EY (financial due diligence, tax).
Vendor – Credit Suisse (M&A); White & Case (legal); Deloitte (financial due diligence, tax).