Financial terms of the transactions weren’t disclosed. Colgate said 2017 combined sales for PCA Skin and EltaMD total about $100 million, and both brands are similar in size and are mainly sold via professional skin care channels and online.
The acquisitions will enable Colgate to enter the pro skin care category and complement its current global personal care businesses, according to the company. PCA Skin is a leader in medical-grade in-office and take-home skin care products and has strong support from dermatologists, plastic surgeons and aestheticians. EltaMD is a leading physician-dispensed sun care brand with positioning around broad-spectrum, everyday-use, physician-dispensed sunscreen.
“PCA Skin and EltaMD form an exciting combination for Colgate’s entry into the professional skin care category. We are delighted that these high-growth, high-margin brands will strengthen our global personal care business,” stated Ian Cook, chairman, president and and chief executive officer of Colgate-Palmolive. “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. Furthermore, these businesses will benefit from Colgate’s decades-long legacy of working with professional experts to deliver recommendations that benefit their patients.”
PCA Skin and EltaMD are distributed in the United States, China and other international markets. Colgate said it plans to continue to operate the brands independently. Both transactions are expected to close in the first quarter of 2018, pending regulatory approval and customary closing conditions.
Colgate-Palmolive’s roster of consumer product brands includes Colgate, Palmolive, Speed Stick, Lady Speed Stick, Softsoap, Irish Spring, Protex, Sorriso, Kolynos, elmex, Tom’s of Maine, Sanex, Ajax, Axion, Fabuloso, Soupline and Suavitel, as well as Hill’s Science Diet and Hill’s Prescription Diet.