L’Oréal to acquire Valeant skincare brands for $1.3bn

L'Oréal has entered into an agreement to acquire skincare brands CeraVe, AcneFree, and AMBI from Valeant Pharmaceuticals International for $1.3bn.

The products of these companies have an annual revenue of around $168m.

Valeant's chief executive officer Joseph C. Papa said: "We are pleased to announce the progress we are making in reshaping our product portfolio and driving value for our shareholders.

"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."

CeraVe's brand includes a line of skincare products including cleansers, moisturisers, sunscreens, and healing ointments, as well as a range specifically designed for babies. CeraVe has reported average growth exceeding 20% in the US over the last two years.

Launched in 1996, AcneFree's brand provides a complete selection of over-the-counter cleansers and acne treatments in the US.

AMBI's brand offers a collection of products such as creams, cleansers, and moisturisers.

Valeant plans to use proceeds from the acquisition to permanently repay term loan debt under its senior credit facility. Subject to customary closing conditions and regulatory approvals, the transaction is expected to close in Q1 of this year.

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Image: CeraVe skincare product range. Photo: courtesy of L'Oréal.