L’Oréal announced the signing of a definitive agreement with Valeant to acquire the skincare brands CeraVe, AcneFree and Ambi for a cash purchase price of 1.3 billion US dollars.
CeraVe was founded in 2005 and offers a range of advanced skincare products, specifically cleansers, moisturizers, sunscreens, healing ointments and a dedicated baby line. Developed with dermatologists, CeraVe is one of the fastest growing skincare brands in the U.S. with average growth over the past two years exceeding 20%. CeraVe’s multi-channel distribution strategy includes drug stores, mass and beauty retailers, and select online outlets.
AcneFree markets and distributes a full range of OTC cleansers and acne treatments in the U.S., Ambi distributes skincare products formulated for the needs of multicultural consumers. Both brands are distributed in drug stores, mass retailers and select online outlets.
The three brands have annualized combined revenue of approximately 168 million US dollars.
“The acquisition of CeraVe, AcneFree and Ambi strongly complement L’Oréal’s brand portfolio,” said Frédéric Rozé, President and CEO of L’Oréal USA. “These three brands, built on strong relationships with health professionals and widely distributed, will nearly double the revenue of our Active Cosmetics Division in the US and will help us satisfy the growing demand for active skincare at accessible prices.”
CeraVe, AcneFree and Ambi will become part of L’Oréal’s Active Cosmetics Division, which includes brands such as La Roche-Posay, Vichy and SkinCeuticals that are developed with and endorsed by health professionals – dermatologists, pediatricians and other physicians.
“We are thrilled to add CeraVe, AcneFree and Ambi to L’Oréal’s Active Cosmetics Division. These brands will deepen our relationships with health professionals and will strengthen our positions in North America in this key and fast growing market. Furthermore, we believe CeraVe has a great potential for international growth in the years to come” said Brigitte Liberman, President of L’Oréal Active Cosmetics Division.
The closing is subject to the standard regulatory approvals and other customary conditions.