Colgate diversifies with skin care acquisition
Company executives have announced the acquisition of EltaMC and PCA skin care brands, said to be amongst the fastest growing brands in the category for the North American market.
Currently the company does not have any brands in this category, so this allows the company to make its first mark in this fast-expanding category, while also complementing its broader global personal care portfolio.
Medical grade skin care
Both brands are present in the medical and physician-dispensed category, a small but fast growing niche in North America that is developing off the back of a flourishing market for skin care products that are approved and prescribed by professionals.
PCA Skin is said to be a leader in medical-grade in-office and take home skin care products, and is widely distributed with the approval of dermatologists, plastic surgeons and aestheticians.
EltaMD is also a leading brand in the physician-dispensed sun care brand that targets broad spectrum everyday use sunscreen.
Diversifying the Colgate skin care portfolio
In 2017 the combined sales of the two brands is estimated at $100 million, and already have an international market, thanks to online sales where the brands have found particular success in China.
The primary market remains the US physician-dispensed market, and both brands are said to be approximately the same size in terms of value sales. The company has also stated that the transactions will have no impact on the company’s 2018 earnings.
Colgate executives have stated that they intend to continue to operate both brands independently once the acquisition is closed.
Building on the skin care portfolio
Colgate’s global skin care portfolio already includes a number of leading global brands, including Palmolive soaps, Tender Care Soaps, Sanex and Softsoap, together with a number of hair care brands that include Gard Shampoo and Caprice Shampoo.
“PCA Skin and EltaMD form an exciting combination for Colgate's entry into the professional skin care category. We are delighted that these high-growth, high-margin brands will strengthen our global personal care business,” said Ian Cook, Colgate's chairman, president and CEO.
"Their complementary product portfolios and sales forces, strong professional support and similar distribution channels will advance Colgate's presence in the premium global skin care category. Furthermore, these businesses will benefit from Colgate's decades long legacy of working with professional experts to deliver recommendations that benefit their patients."
