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L’Oréal buys CeraVe, AcneFree, Ambi brands from Valeant

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CLICHY, N.Y., and LAVAL, Quebec — L’Oréal plans to acquire the CeraVe, AcneFree and Ambi skin care brands from Valeant Pharmaceuticals International Inc. for $1.3 billion in cash.

Plans call for CeraVe, AcneFree and Ambi to become part of the L’Oréal Active Cosmetics Division, which includes the La Roche-Posay, Vichy and SkinCeuticals brands developed with and endorsed by health professionals such as dermatologists, pediatricians and other physicians, L’Oréal said Tuesday.

cerave-products_valeant“The acquisition of CeraVe, AcneFree and Ambi strongly complement L’Oréal’s brand portfolio,” stated Frédéric Rozé, president and chief executive officer 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 U.S. and will help us satisfy the growing demand for active skin care at accessible prices.”

The CeraVe, AcneFree, and AMBI product lines have annualized revenue of about $168 million.

Valeant described CeraVe, developed with dermatologists, as one of the fastest-growing skin care brands in the U.S., with average growth topping 20% over the past two years. The brand’s advanced skin care products include cleansers, moisturizers, sunscreens, healing ointments and a baby skin care line.

AcneFree’s lineup includes a range of over-the-counter skin cleansers and acne treatments, while Ambi’s face and body creams, cleansers and moisturizers are formulated for the skin care needs of multicultural consumers.

“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,” commented Brigitte Liberman, president of the L’Oréal Active Cosmetics Division. “Furthermore, we believe CeraVe has a great potential for international growth in the years to come.”

Valeant said it plans to use the proceeds from the sale to repay term loan debt under its senior credit facility. The transaction is expected to close in the first quarter of 2017, pending regulatory approvals and other customary closing conditions.

“We are pleased to announce the progress we are making in reshaping our product portfolio and driving value for our shareholders,” stated Valeant CEO Joseph Papa. “The success of these products, and today’s transaction, is a testament to the Valeant teams who have impressively grown these brands over the past several years. We believe these products will benefit even further from the resources and capabilities of a global beauty company like L’Oréal, which is well-equipped to build on the success of these brands and expand into new global markets. Our remaining consumer products business is well-positioned for continued advancement within Valeant’s portfolio.”

Other Valeant consumer brands in the U.S. include PreserVision and Ocuvite vitamins and BioTrue lens care solutions.


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