Colgate-Palmolive announced it would acquire the skincare business of France’s Laboratoires Filorga Cosmétiques for €1.5 billion ($1.69 billion). The auction of the business was said to be competitive among strategic players, according to industry sources.
WHO: Filorga was founded in 1978 as the first French aesthetic medicine laboratory. It has evolved into a leading premium anti-aging skincare brand focused primarily on facial care and sold in over 60 countries. Its largest markets are France, Italy, Spain, and Greater China.
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: Known for its dental-care products, Colgate is looking to expand its presence in the personal care category with acquisitions of skincare brands PCA Skin and EltaMD in 2017.
IN THEIR OWN WORDS: “Filorga is a strong, premium-priced brand with distinctive positioning that fits well within our long-term personal-care growth strategy. We are excited that this acquisition will add a high-growth, profitable, global skin-care asset to the Colgate portfolio with the opportunity to drive continued growth through expanded distribution and awareness. This acquisition also provides Colgate entry into the fast-growing and sizable travel-retail channel, particularly in Asia,” said Noel Wallace, Colgate President and Chief Executive Officer.
- Colgate-Palmolive acquires Laboratoires Filorga Cosmétiques for €1.5 billion ($1.69 billion).
- HLD Group acquired Laboratories Filorga in 2010.
- WWD reported in January that the brand had hired BNP Paribas and Goldman Sachs to explore sale options.
- The sale process reportedly began in February according to industry sources, and the business was said to have €50 million in earnings before interest, taxes, depreciation, and amortization.
- The transaction will be financed with a combination of debt and cash and is currently expected to close in the third quarter.
- The deal is expected to have no impact on earnings per share in 2019.
- Wachtell, Lipton, Rosen & Katz and CMS Francis Lefebvre Avocats acted as legal advisors and Citi acted as financial advisor to Colgate-Palmoliveon the transaction.
- Bredin Prat acted as legal advisor and Goldman Sachs and BNP Paribas acted as financial advisors to Filorga Initiatives on the transaction.
Photo: via Laboratories Filorga