Colgate-Palmolive will purchase Laboratoires Filorga Cosmétiques’ skin care unit as part of its strategy to expand its premium skin care portfolio, media reports said. The company has agreed to buy Filorga for $1.69 billion.
Colgate is mostly known for its dental care products worldwide. France’s Filorga is an anti-aging skin care brand with products primarily focused on facial care. Its products are sold in more than 60 countries with France, Italy, Spain and Greater China being its largest markets.
In recent years, the French skin care brand had ventured into travel retail in addition to other healthcare channels such as pharmacy and speciality stores. With the acquisition of Filorga, Colgate will enter travel retailing. “This acquisition also provides Colgate entry into the fast-growing and sizeable travel retail channel, particularly in Asia,” Noel Wallace, Colgate’s President and CEO said.
The transaction with Filorga will comprise both debt and cash and is expected to close in the third quarter of the year. Wachtell, Lipton, Rosen & Katz and CMS Francis Lefebvre Avocats acted as legal advisors on the transaction for Colgate, while Bredin Prat acted as legal advisor for Filorga. Citi was the financial advisor to Colgate and Goldman Sachs and BNP Paribas were financial advisors to Filorga.
Colgate generated annual revenue of US$15.5 billion last year. Ajax, Colgate, Fabuloso, Palmolive, Sanex, Softsoap and Speed Stick are part of Colagate’s portfolio. The company first forayed in skin care in 2017 with the purchase of PCA Skin and EltaMD.