01.11.17
L'Oreal has entered into an agreement to purchase CeraVe, AcneFree And AMBI skin care brands--for $1.3 billion--from Valeant Pharmaceuticals International. These brands have annualized revenue of approximately of $168 million.
These acquisitions will almost double the size of L’Oréal’s Active Cosmetics Division in the U.S., Eva Quiroga, an analyst at Deutsche Bank, tells WWD.
CeraVe was developed with dermatologists, and is one of the fastest growing skincare brands in the U.S. with average growth over the past two years exceeding 20%, Valeant stated. The brand offers a range of advanced skincare products, including cleansers, moisturizers, sunscreens, healing ointments and a baby line.
AcneFree offers a full range OTC cleansers and acne treatments in the U.S. introduced to the market in 1966. AMBI includes a range of skin care products formulated for the needs of multicultural consumers, such as creams, cleansers and moisturizers in the face and body category.
Valeant CEO Joseph C. Papa says, "We are pleased to announce the progress we are making in reshaping our product portfolio and driving value for our shareholders. The success of these products, and today's transaction, is a testament to the Valeant teams who have impressively grown these brands over the past several years. We believe these products will benefit even further from the resources and capabilities of a global beauty company like L'Oréal, which is well equipped to build on the success of these brands and expand into new global markets. Our remaining consumer products business is well positioned for continued advancement within Valeant's portfolio."
Valeant will use the proceeds from the sale to repay term loan debt. The transaction is expected to close in the first quarter of 2017.
These acquisitions will almost double the size of L’Oréal’s Active Cosmetics Division in the U.S., Eva Quiroga, an analyst at Deutsche Bank, tells WWD.
CeraVe was developed with dermatologists, and is one of the fastest growing skincare brands in the U.S. with average growth over the past two years exceeding 20%, Valeant stated. The brand offers a range of advanced skincare products, including cleansers, moisturizers, sunscreens, healing ointments and a baby line.
AcneFree offers a full range OTC cleansers and acne treatments in the U.S. introduced to the market in 1966. AMBI includes a range of skin care products formulated for the needs of multicultural consumers, such as creams, cleansers and moisturizers in the face and body category.
Valeant CEO Joseph C. Papa says, "We are pleased to announce the progress we are making in reshaping our product portfolio and driving value for our shareholders. The success of these products, and today's transaction, is a testament to the Valeant teams who have impressively grown these brands over the past several years. We believe these products will benefit even further from the resources and capabilities of a global beauty company like L'Oréal, which is well equipped to build on the success of these brands and expand into new global markets. Our remaining consumer products business is well positioned for continued advancement within Valeant's portfolio."
Valeant will use the proceeds from the sale to repay term loan debt. The transaction is expected to close in the first quarter of 2017.
