Colgate-Palmolive is making a foray into the beauty industry, with the acquisition of two skincare brands. The group, whose personal hygiene brands include Colgate, Palmolive Naturals, Sanex and Softsoap, has announced plans to purchase PCA Skin and EltaMD. PCA Skin specializes in medical-grade in-office and take-home skin care products, while EltaMD offers sun care products for broad-spectrum, everyday use, dispensed by physicians.
Estimated 2017 net sales for PCA Skin and EltaMD combined approximate US $100 million. Both brands are similar in size and are primarily sold through professional skin care channels and online in the US and China, as well as in additional international markets.
"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, in a statement. "We are delighted that these high-growth, highmargin 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."
The acquisitions will be treated as two separate transactions and are set to close early in 2018.
Colgate-Palmolive is not the only major company to have taken an interest in up-and-coming skincare brands this year. In September, Anglo-Dutch food and consumer products giant Unilever announced plans to purchase leading South Korean cosmetics and skincare company Carver Korea for approximately US $2.69 billion, while French cosmetics giant L’Oréal unveiled plans to buy the brands CeraVe, AcneFree and Ambi from Valeant for US $1.3 billion back in January.