Colgate to acquire beauty and healthcare brands in two separate transactions
Acquisition to garner Colgate PCA Skin and EltaMD skin care brands.
NEW YORK—Colgate-Palmolive Company, as part of its strategy to focus on its higher-margin oral care, personal care and pet nutrition businesses, has agreed to purchase PCA Skin and EltaMD, two of the fastest-growing brands in professional skin care, in two separate transactions.
These acquisitions will enable Colgate to enter the highly-attractive 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 sun care brand with a unique positioning around broad-spectrum, everyday use, physician-dispensed sunscreen.
Estimated 2017 net sales for PCA Skin and EltaMD combined approximate US$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.
Colgate chairman, president and chief executive officer Ian Cook says, “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.
Colgate-Palmolive is a leading global consumer products company focused on oral care, personal care, home care and pet nutrition. Colgate sells its products in over 200 countries and territories around the world under such internationally recognized brand names as Colgate, Palmolive, Speed Stick, Lady Speed Stick, Softsoap, Irish Spring, Protex, Sorriso, Kolynos, elmex, Tom’s of Maine, Sanex, Ajax, Axion, Fabuloso, Soupline and Suavitel, as well as Hill’s Science Diet and Hill’s Prescription Diet. For more information visit www.colgatepalmolive.com.