L'Oréal has acquired the skin care brands CeraVe, AcneFree and Ambi from the troubled Valeant for $1.3 billion in cash. The CeraVe acquisition, in particular, gives the company a stronger foothold in dermocosmetics and expert-backed skin care. The three brands have annual combined revenue of about $168 million. The price is in line with other strategic buyers' payment of high multiples.
CeraVe, AcneFree and Ambi will be folded into L'Oréal's Active Cosmetics Division, which includes La Roche-Posay, Vichy and SkinCeuticals.
CeraVe, founded in 2005, comprises cleansers, moisturizers, sunscreens, healing ointments and a dedicated baby line and has exceeded 20% growth over the last two years.The brand is distributed via drug stores, mass and beauty retailers, and select online outlets.
"These three brands, built on strong relationships with health professionals and widely distributed, will nearly double the revenue of our Active Cosmetics Division in the US and will help us satisfy the growing demand for active skin care at accessible prices."
AcneFree offers OTC cleansers and acne treatments in the U.S., while Ambi distributes skin care products formulated for multicultural consumers. Both are distributed in drug stores, mass retailers and select online outlets.
"The acquisition of CeraVe, AcneFree and Ambi strongly complement L'Oréal's brand portfolio," said Frédéric Rozé, president and CEO of L'Oréal USA. "These three brands, built on strong relationships with health professionals and widely distributed, will nearly double the revenue of our Active Cosmetics Division in the US and will help us satisfy the growing demand for active skin care at accessible prices."
"We are thrilled to add CeraVe, AcneFree and Ambi to L'Oréal's Active Cosmetics Division," said Brigitte Liberman, president of L'Oréal Active Cosmetics Division. "The closing is subject to the standard regulatory approvals and other customary conditions. These brands will deepen our relationships with health professionals and will strengthen our positions in North America in this key and fast growing market. Furthermore, we believe CeraVe has a great potential for international growth in the years to come."
