Luxury skin care bought out by Laura Mercier

By Katie Bird

- Last updated on GMT

Gurwitch Products, manufacturers of Laura Mercier cosmetics, has
bought RéVive skincare in an attempt to enlarge its product
portfolio.

The Houston-based company will pay approximately $50m for RéVive, according to press reports. Since August 2006, Gurwitch Products has been a wholly owned subsidiary of direct selling giant Alticor. Founded by Janet Gurwitch at a similar time to RéVive, the purchase of the luxury skin care manufacturer has long been on the Gurwitch agenda, said Gregory Bays Brown founder and chief of creative service for RéVive. Alticor provides corporate experience ​ RéVive's decision to sell was prompted by a number of reasons including a wish to increase international distribution and product innovation, Brown told CosmeticsDesign.com. "At ten years old the company had reached a point where industry experience from a corporate standpoint was needed"​ explained Brown. "Alticor's deep pockets give us the opportunity for further product development and innovation,"​ he said, adding that the company would like to be able to offer one new product development a year. In addition, plans for a cheaper line of products designed for mid market distribution are underway which Brown referred to as 'mass with class'. Furthermore, Alticor's international presence will allow the company to expand distribution worldwide, building on the sprinkling of distributors that already exist in Europe, Asia and Australia. South America is unlikely to be targeted immediately although this is due to Alticor's lack of experience in the area rather than a lack of demand, Brown said. As a result of the buy-out RéVive's corporate office will relocate to New York. Administration and back office tasks will be undertaken by Gurwitch and will therefore be centred in the Laura Mercier offices in Houston. RéVive complements Mercier offerings ​ Although Laura Mercier does have a skin care line, RéVive's portfolio will significantly enlarge this area of the business. "We approached RéVive because we wanted something that complemented, not cannibalized, what we were doing, which was Laura Mercier,"​ said Chelsi Oestreich, divisional vice president of marketing for Gurwitch Products as quoted by the Washington Business Journal. RéVive skin care's products include epidermal, insulin-like and keratinocyte growth factors that the company claims restore a youthful appearance to the skin. The products are billed as surgery substitutes and with price tags of between $150 and $1500 they fit securely into the top end of the luxury category.

Related topics: Business & Financial

Related news

Show more

Follow us

Products

View more

Webinars