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    Beauty Buzz

    Colgate-Palmolive Purchases Professional Skincare Brands

    ...

    Colgate-Palmolive Purchases Professional Skincare Brands
    With its acquisitions of PCA Skin (shown) and EltaMD, Colgate eyes higher-margin offerings.
    01.26.18
    Colgate-Palmolive continues its strategy to focus on higher-margin oral care, personal care and pet nutrition businesses, most recently announcing an agreement to purchase PCA Skin and EltaMD, described as two of the fastest-growing brands in professional skin care in two separate transactions. These acquisitions will enable Colgate to enter the professional skin care category while complementing its existing global personal care businesses.

    PCA Skin is a leader in medical-grade in-office and take-home skin care products, and has strong support from dermatologists, plastic surgeons and aestheticians. EltaMD is a leading physician-dispensed suncare brand with a unique positioning around broad-spectrum, everyday use, physician-dispensed sunscreen.

    Estimated 2017 net sales for PCA Skin and EltaMD combined approximate $100 million. Both brands are similar in size and are primarily sold through professional skin care channels and online. They are distributed in the U.S., China and certain other international markets. Colgate plans to continue to operate the brands independently after closing.

    Ian Cook, Colgate’s chairman, president and CEO commented, “PCA Skin and EltaMD form an exciting combination for Colgate’s entry into the professional skin care category. We are delighted that these high-growth, high-margin brands will strengthen our global personal care business. Their complementary product portfolios and sales forces, strong professional support and similar distribution channels will advance Colgate’s presence in the premium global skin care category. Furthermore, these businesses will benefit from Colgate’s decades long legacy of working with professional experts to deliver recommendations that benefit their patients.”

    The terms of the deals have not been disclosed. Both transactions are currently expected to close in the first quarter of 2018. 
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