Company - - Jan 10,2017
French Cosmetics Company, L’Oréal SA, declared it would be buying three active skincare brands AcneFree, Ambi and CeraVe from Valeant Pharmaceuticals International Inc. for $1.3bn.
The deal will be finalized in cash which L’Oréal SA said would boost the company’s US revenues. L’Oréal stated that the three brands had an annualized, mutual revenue of nearly $168 billion. These products will turn out to be part of L’Oréal’s Active Cosmetics Division.
The US Chief Executive Officer and President of L’Oréal, Frederic Roze said in a statement, these three brands built on resilient relationships with health specialists and widely distributed will almost double the revenue of the company’s Active Cosmetics Division in the United States, moreover, would also help it satisfy the increasing demand for active skincare at accessible rates.
The deal mark as a start to Valeant Pharmaceuticals international Inc. efforts to pay down approx. $30 billion in debt. The Canada-based pharmaceutical company has been involved in scandals regarding company’s high prices and accounting that led to regulatory and legal investigations along with declines in its share value.
Last year, Valeant Pharmaceuticals international Inc. cut its financial forecast three times and was investigated by law enforcement. Valeant’s US stakes have plunged 94% from their 2015 peak, cutting its market value to 5.2 billion dollars.
The president of L`Oréal Active Cosmetics Division, Brigitte Liberman, said in a statement, the company is pleased to add AcneFree, Ambi and CeraVe to L`Oréal`s Active Cosmetics Division.
These products will extend corporation relationships with health professionals and will fortify the firm’s spot in North America in this important and fast rising market. Furthermore, the Paris-based beauty and hair care product also believe that CeraVe has a countless potential for global development in the years to come.
The agreement is subject to the standard regulatory authorizations and other customary conditions.