In one of the first noteworthy acquisitions to kick off 2017, French cosmetics group L’Oréal has agreed to purchase skin care brands CeraVe, AcneFree and Ambi from Valeant Pharmaceuticals for about $1.3 billion in cash. The brands, which have annualized combined revenue of approximately $168 million, will become part of L’Oréal’s Active Cosmetics Division, which includes the La Roche-Posay, Vichy and SkinCeuticals brands. The deal will nearly double revenue for the Division in the U.S., which is overseen by Brigitte Liberman, President of L’Oréal Active Cosmetics.
CeraVe was developed with dermatologists in 2005 and is comprised of cleansers, moisturizers, sunscreens, healing ointments and baby products. It’s one of the fastest growing skin care brands in the U.S. with average growth over the past two years exceeding 20 percent. It has a multi-channel distribution strategy and is being eyed for international growth.
Both AcneFree and Ambi are mass brands. AcneFree markets and distributes a full range of OTC cleansers and acne treatments in the U.S., while Ambi targets multicultural consumers with skin care products formulated for their specific needs.