Vogue International — known for its rainbow of OGX shampoo and conditioner bottles — will soon see a lot of green.
Johnson & Johnson Consumer Inc. has agreed to purchase the company from Vogue International founder and Chief Executive Officer, Todd Christopher, and The Carlyle Group, which owns a minority stake in the firm, for $3.3 billion. The transaction is subject to customary closing conditions and is expected to close in the third quarter.
Vogue, which has a portfolio of personal care and hair care brands that includes OGX (formerly Organix), FX, Proganix and Maui Moisture, has been on a growth tear in recent years.
One investment banker estimated that Vogue has annual earnings before interest, taxes, depreciation and amortization of around $160 million. The current sale price is three times the $1 billion that Vogue reportedly sought in 2013 when it pursued a sale. The Carlyle Group acquired a minority stake in Vogue International in February 2014. Carlyle’s investment came shortly after a name change — Organix to OGX — delayed an earlier effort to sell the company. But that was a tiny bump in the road.
The company said its OGX business grew more than 25 percent in 2015 and is on track to reap more than $400 million in gross sales this year. One of its best-selling collections, Argan Oil of Morocco, gained 13 percent in the last year, according to AC Nielsen data provided by the company.
As one financial observer said, “People love the colors of the bottles and the ingredient deck — and every mass retailer has copied it, but it has still grown.”
Retail sales across the OGX hair care brands totaled $77.3 million, a gain of 140.7 percent, for the 52-week period ended April 17, across U.S. multi-outlet stores (which includes supermarkets, drugstores, mass market retailers, military commissaries and select club & dollar retail chains), according to IRI. The fastest-selling products during that time period, according to IRI data, include OGX Quenching + Coconut Curls Shampoo and Quenching + Coconut Curls Conditioner.
Recent launches include OGX Fight Fallout + Niacin3 & Caffeine Collection and OGX Gravity-Defying & Hydration + O2. Both collections launched in January.
The OGX brand said its growth recently boosted it to the sixth position in hair care, overtaking Herbal Essences for the first time, according to AC Nielsen. It aims to end the year in the number five spot, above Garnier Fructis and Clairol.
Todd said, “This is an exciting and important new chapter in the growth and development of Vogue. Our commitment to quality and innovation will be magnified by Johnson & Johnson Consumer’s array of marketing, R&D and support resources on a global basis. Many thanks to Sandra Horbach and her team at Carlyle for being true partners as we took Vogue to new levels of innovation and market penetration and created a world-class management team.”
Sandra, Carlyle Managing Director and Head of the Consumer & Retail team, said, “It has been a privilege to partner with Todd and to support his efforts to develop and launch innovative products, strengthen and grow the organization, advance sustainability practices, and reach new customers all around the world with the OGX brand. Johnson & Johnson Consumer Inc. will be a great new home for Vogue.”
Goldman Sachs acted as financial adviser to Vogue.