Colgate-Palmolive Announces $100 Million Skin-Care Acquisitions
Global personal-care company Colgate-Palmolive has announced the acquisition of the two skin care brands, PCA Skin and EltaMD Skin Care.
The combined purchase of approximately $100 million will enable the company to enter the professional skin-care category, while complementing its existing global personal-care businesses, such as Colgate toothpaste, Palmolive soaps and Protex soaps.
According to the company, PCA Skin is a leader in medical-grade in-office and take-home skin care products, while EltaMD is a physician-dispensed sun care brand.
Both brands are similarly sized and are sold predominantly through professional skin care and online channels. They are distributed in the US, China and other international markets, however, Colgate said it plans to continue to operate the two brands independently after closing the sale.
"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,” said Ian Cook, CEO of Colgate.
“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, but both transactions are currently expected to close in the first quarter of 2018, subject to customary closing conditions.
Colgate added that these transactions are expected to have no impact on earnings in 2018.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Kevin Duggan. Click subscribe to sign up to ESM: The European Supermarket Magazine.