French cosmetics giant L'Oreal today struck a deal to buy three skincare brands from Canada's Valeant Pharmaceuticals, for $1.3 billion, in cash.
The Paris-based company is buying three skincare brands - CeraVe, AcneFree and Ambi - which had combined annual revenue of around $168 million.
The CeraVe brand portfolio has advanced skincare products that include cleansers, moisturisers, sunscreens, healing ointments and a dedicated baby line. Developed with dermatologists, CeraVe is one of the fastest growing skincare brands in the US with average growth over the past two years exceeding 20 per cent.
The AcneFree brand portfolio offers a full range OTC cleansers and acne treatments in the US introduced to the market in 1966.
The AMBI brand portfolio offers a range of skincare products formulated for the needs of multicultural consumers that includes creams, cleansers and moisturisers in the face and body category.
"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 skincare at accessible prices," said Frederic Roze, president and CEO of L'Oréal USA.
"We are pleased to announce the progress we are making in reshaping our product portfolio and driving value for our shareholders," said Valeant CEO, Joseph Papa.
"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,'' he added.
Valeant, based in Ottawa, said that it will use the proceeds from the sale to loan debt under its Senior Credit Facility.