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Colgate soaks in the skincare business of Filorga
Posted on Friday, 12 July 2019 11:21
Colgate-Palmolive is acquiring the skincare operations of France’s Laboratoires Filorga Cosmétiques for EUR 1.50 billion as part of plans to focus on high-margin oral and personal care.
The buyer, best known for its range of toothpastes, will finance the acquisition using a combination of debt and cash and is expecting the deal to have no impact on diluted earnings per share this year.
Closing of the transaction is slated for the third quarter of 2019, subject to regulatory approvals in certain countries.
Filorga makes premium anti-aging skin care products with sales in over 60 countries, including France, Italy, Spain and Greater China.
Noel Wallace, chief executive of the acquiror, said: “Filorga is a strong, premium-priced brand with distinctive positioning that fits well within our long-term personal care growth strategy.
“We are excited that this acquisition will add a high-growth, profitable, global skin care asset to the Colgate portfolio with the opportunity to drive continued growth through expanded distribution and awareness. This acquisition also provides Colgate entry into the fast-growing and sizeable travel retail channel, particularly in Asia.”
Founded in 1978, Filorga claims to be the first French laboratory for aesthetic medicine.
Local media reports suggested the company was up for sale in January, with an estimated value of EUR 1.00 billion.
In April, an article by Les Echos suggested several bidders had shown interest in the cosmetics, skincare and beauty products manufacturer, including Johnson & Johnson, L’Oréal, Colgate and Estee Lauder.
The preferred acquiror owns brands such as Palmolive, Sanex and Protex and generated net sales of USD 3.88 billion in the three months to 31st March 2019, down 3.0 per cent from USD 4.00 billion in the corresponding period of 2018.
Net income totalled USD 560.00 million in Q1 2019, compared to profit of USD 634.00 million in Q1 2018.
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