After purchasing IT Cosmetics in July and agreeing to do the same with Atelier Cologne prior in June, L’Oréal isn’t finished. They have now agreed to acquire brands CeraVe, Ambi and AcneFree from Valeant Pharmaceuticals International Inc. to bolster their cosmetics division. The cash sale price is approximately $1.3 billion.
The company is also selling their Dendron Pharmaceuticals unit to Sanpower Group Co. for $820 million. Both transactions hope to necessarily shed some of Valeant’s overall debt.
For L’Oréal, the timing is ideal. All three brands carry potential for sustainable growth with a combined $168 million in generated revenue last year. They will be absorbed into L’Oréal’s Active Cosmetics Division, which accounted for almost $500 million in sales globally as of the third quarter last year.
“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 U.S. and will help us satisfy the growing demand for active skin care at accessible prices,” stated L’Oréal USA president and chief executive officer, Frédéric Rozé.
Ambi and AcneFree sell skin care throughout some drug stores, retailers and online retail sites. AcneFree’s name is appropriate to their product range of facial cleansers and acne care. Ambi is also focused on skin care, but targets a multicultural demographic.
Still, CeraVe’s spotlight is noticeably the largest between the three. It is the product of dermatology research since it’s launch in 2005. An ingredient of all their offerings is ceramide, a primary component of the skin’s outermost layer. The brand’s products also range from moisturizers, sunscreens, cleansers and more for dry skin relief.
“We believe CeraVe has great potential for international growth in the years to come,” said L’Oréal Active Cosmetics Division president, Brigitte Liberman.
Valeant Pharmaceuticals International Inc. still carries near $28 billion worth of debt following the two sales. That issue will take much more time and effort to fully solve. L’Oréal, on the other hand, continues to improve their position as a top name in cosmetics globally.