As part of its strategy to focus on its higher-margin oral care, personal care, and pet nutrition businesses, the Colgate-Palmolive Company announced today it has agreed to purchase PCA Skin and EltaMD, two of the fastest growing brands in professional skincare. The acquisitions, occurring in two separate transactions, will enable Colgate to enter the personal skincare marketing while complementing its existing personal care businesses across the globe.
“PCA Skin and EltaMD form an exciting combination for Colgate’s entry into the professional skin care category,” says Ian Cook, Colgate’s chairman, CEO, and president. “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.”
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. and China, as well as a few other other international markets. Colgate says its plans to continue to operate the brands independently after closing.
The terms of the deals have not been disclosed, though both transactions are currently expected to close in the first quarter of 2018. The acquisitions are subject to customary closing conditions, including the U.S. antitrust clearance. Additionally, the transactions are not expected to have an impact on 2018 earnings.