Colgate-Palmolive Company is shifting its focus to higher-margin personal care products with the acquisition of two of the fastest-growing brands in skin care.
Colgate announced that it has agreed to purchase PCA Skin and EltaMD in two separate transactions. Colgate says the acquisitions will enable the company to enter the highly attractive professional skin care category while complementing its existing global personal care businesses.
PCA Skin is a leader in medical-grade in-office and take-home skin care products, and has strong support from dermatologists, plastic surgeons and aestheticians. EltaMD is a leading physician-dispensed sun care brand with a unique positioning around broad-spectrum, everyday use, physician-dispensed sunscreen.
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 skin care channels and online. They are distributed in the U.S., China and certain other international markets. Colgate plans to continue to operate the brands independently after closing.
“PCA Skin and EltaMD form an exciting combination for Colgate’s entry into the professional skin care category," said Ian Cook, Colgate’s Chairman, President and CEO. "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.
Colgate-Palmolive sells its products in over 200 countries and territories around the world under such brand names as Colgate, Palmolive, Speed Stick, Lady Speed Stick, Softsoap, Irish Spring, Protex, Sorriso, Kolynos, elmex, Tom’s of Maine, Sanex, Ajax, Axion, Fabuloso, Soupline and Suavitel, as well as Hill’s Science Diet and Hill’s Prescription Diet.