French cosmetics group L’Oreal (LRLCY) is acquiring three specialized skincare brands – CeraVe, AcneFree and Ambi – from Canada’s Valeant Pharmaceuticals International (VRX) for $1.3 billion in cash to expand into one of the fastest growing areas of the beauty industry.
The French cosmetics giant paid nearly eight times the brand’s combined annual revenue of $168 million.
“These three brands, built on strong relationships with health professionals and widely distributed, will nearly double the revenue of our Active Cosmetics Division in the U.S. and will help us satisfy the growing demand for active skincare at accessible prices,” Frederic Roze, president and chief executive of L’Oréal USA, said in a statement.
