J&J acquires Vogue International
The move puts J&J in a better position to compete in the hair care category. “Our acquisition of Vogue International's full line of leading advanced hair care products sold in the U.S. and in 38 countries will strengthen our global presence in this important category,” affirms Jorge Mesquita, worldwide chairman, consumer at Johnson & Johnson, in the company’s media release about the deal.
Mesquita explains the value gained like this: “Vogue International's commitment to quality, innovation, and consumer preference complement our Consumer portfolio, while also presenting attractive hair care category growth opportunities for Johnson & Johnson.”
The privately held Vogue International portfolio comprises mostly hair care brands. In the release, Johnson & Johnson calls attention to OGX (a collection of shampoos, conditioners, styling products, treatments, and more), FX (a hair styling product line), Proganix (hair care), and Maui Moisture (hair care).
Given such a strong showing of hair brands—it’s estimated the company accounts for 3% of the mass market share—some industry commentators were surprised that Germany’s Henkel didn’t acquire Vogue International. Henkel was in on the bidding, as were other big beauty corporations such as Unilever and L’Oréal.
The current acquisition is, of course, subject to regulatory approvals and closing conditions. J&J expects the deal to be final in Q3 of this year. But the company does not believe it will “ impact the 2016 sales or earnings guidance ranges that Johnson & Johnson announced on April 19, 2016.”
Hair care isn’t the only thing the company has picked up lately. J&J is deliberately spending to firm up its standing in several personal care categories.
Last month the company acquiredthe anti-aging skin care company NeoStrata. As Cosmetics Design reported at the time, “[that] New Jersey–based company prides itself on a portfolio of skin care products and is respected for influencing industry anti-aging technologies with its research on Alpha hydroxyl acids.”
Commenting on that deal, Mesquita told the press, “NeoStrata and Johnson & Johnson share a strong history of innovation and together we will work to discover important new skin care solutions grounded in deep human insights and compelling science.”