Colgate heads into professional skincare space, acquires 2 brands
The Colgate-Palmolive Company announced it has acquired two professional-quality skincare brands, PCA Skin and EltaMD, in two separate transactions, as part of its strategy to build its global personal care business.
The two brands will be Colgate's entry points into the professional skincare category which it has previously not served.
PCA Skin sells medical-grade products for use in office, as well as take-home products. The brand is supported by plastic surgeons, dermatologists and aestheticians.
EltaMD is a sun care brand that offers physician-dispensed broad-spectrum sunscreen. It's products are positioned as recommended by physicians for everyday use.
Ian Cook, Colgate’s Chairman, President and CEO said the brands will strengthen the company's global personal care business. Cook stated, "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."
Cook also noted that the entry into professional skincare is a natural next step for Colgate which has worked with skincare professionals for decades to "deliver recommendations that benefit their patients.”
EltaMD and PCA Skin are similarly sized companies and Colgate estimates their combined 2017 net sales total at around $100 million.
The brands are currently distributed in the US, China and select international markets, and are sold direct through professional skincare channels, as well as online through platforms such as Amazon Beauty and Walmart. Colgate plans to operate the brands independently after the deal closes.
Financial terms of the acquisition were not disclosed. It is expected to close in the first quarter of 2018, after standard closing conditions, including US antitrust review, are met.
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