Valeant Pharmaceuticals completes sale of skincare brands to L’Oréal

Valeant Pharmaceuticals has completed a previously announced sale of its CeraVe, AcneFree, and AMBI skincare brands to L'Oréal for $1.3bn in cash.

In January, Valeant signed an agreement to sell its brands to L'Oreal. The products of these brands have annual revenue of around $168m.

Valeant's chief executive officer (CEO) Joseph C. Papa said: "We are pleased to close this transaction with L'Oréal, and further our progress to pay down debt.

“The announcement is the first of significant steps within our divestiture programme, which will help us focus our business, meet our financial goals and create value for our shareholders."

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.

Valeant Pharmaceuticals is a multinational specialty company that develops, manufactures, and markets a broad range of pharmaceutical products, primarily in the areas of dermatology, gastrointestinal disorders, eye health, neurology, and branded generics.