Colgate-Palmolive Company has agreed to purchase professional skincare brands PCA Skin and EltaMD in two separate transactions. According to the company, these acquisitions will enable Colgate to enter the highly attractive professional skincare category while complementing its existing global personal care businesses.
WHO: Scottsdale-based brand PCA Skin is a leader in medical-grade in-office and take-home skincare products, and has strong support from dermatologists, plastic surgeons, and aestheticians.
Michael Lorrain joined the business from L’Oréal’s Active Cosmetics Division as chief executive officer of PCA. The business also hired Chris Payne as chief marketing officer in 2016.
EltaMD is a leading physician-dispensed sun care brand with a unique positioning around broad-spectrum, everyday use, physician-dispensed sunscreen.
Colgate-Palmolive is a leading global consumer products company, tightly 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 internationally recognized brand names.
WHY: These acquisition reflects a by Colgate-Palmolive to focus on its higher-margin oral care, personal care and pet nutrition businesses.
IN THEIR OWN WORDS:
Colgate’s Chairman, President and CEO Ian Cook 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.
- 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 skincare channels and online.
- PCA Skin has been backed by Norwest Venture Partners for roughly five years.
- EltaMD was acquired by Prairie Capital as part of the private equity firm’s 2012 acquisition of Swiss-American Products.
- Colgate plans to continue to operate the brands independently after closing.
- Wells Fargo Securities advised Colgate on the acquisition of EltaMD. Financo advised PCA.
Photo: via colgatepalmolive.com