NEW YORK--(BUSINESS WIRE)--
Colgate-Palmolive Company (NYSE:CL), as part of its strategy to focus on
its higher-margin oral care, personal care and pet nutrition businesses,
today announced that it has agreed to purchase PCA Skin and EltaMD, two
of the fastest-growing brands in professional skin care, in two separate
transactions. These acquisitions will enable Colgate to enter the highly
attractive professional skin care category while complementing its
existing global personal care businesses.
PCA Skin is a leader in medical-grade in-office and take-home skin care
products, and has strong support from dermatologists, plastic surgeons
and aestheticians. EltaMD is a leading physician-dispensed sun care
brand with a unique positioning around broad-spectrum, everyday use,
Estimated 2017 net sales for PCA Skin and EltaMD combined approximate
$100 million. Both brands are similar in size and are primarily sold
through professional skin care channels and online. They are distributed
in the U.S., China and certain other international markets. Colgate
plans to continue to operate the brands independently after closing.
Ian Cook, Colgate's Chairman, President and CEO commented, "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. 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."
The terms of the deals have not been disclosed. Both transactions are
currently expected to close in the first quarter of 2018. The
acquisitions are subject to customary closing conditions, including U.S.
These transactions are expected to have no impact on earnings in 2018.
Wachtell, Lipton, Rosen & Katz acted as legal advisor to
Colgate-Palmolive on both transactions and Wells Fargo Securities, LLC
acted as exclusive financial advisor to Colgate-Palmolive on the
acquisition of EltaMD.
About Colgate-Palmolive: Colgate-Palmolive is a leading global consumer
products company, tightly focused on Oral Care, Personal Care, Home Care
and Pet Nutrition. Colgate sells its products in over 200 countries and
territories around the world under such internationally recognized brand
names as Colgate, Palmolive, Speed Stick, Lady Speed Stick, Softsoap,
Irish Spring, Protex, Sorriso, Kolynos, elmex, Tom's of Maine, Sanex,
Ajax, Axion, Fabuloso, Soupline and Suavitel, as well as Hill's Science
Diet and Hill's Prescription Diet. For more information about Colgate's
global business, visit the Company's website at http://www.colgatepalmolive.com.
To learn more about Colgate Bright Smiles, Bright Futures® oral health
education program, please visit http://www.colgatebsbf.com.
Cautionary Statement on Forward-Looking Statements
This press release may contain forward-looking statements (as that term
is defined in the U.S. Private Securities Litigation Reform Act of 1995
or by the Securities and Exchange Commission (SEC) in its rules,
regulations and releases) that set forth, among other things,
anticipated results based on management's plans and assumptions and the
timing of completion of the transactions. Such statements may relate,
for example, to the expected timing of the closing of the transactions
and the expected impact on 2018 earnings, among other matters. These
statements are made on the basis of the Company's views and assumptions
as of this time and the Company undertakes no obligation to update these
statements whether as a result of new information, future events or
otherwise, except as required by law or by the rules and regulations of
the SEC. Moreover, the Company does not, nor does any other person,
assume responsibility for the accuracy and completeness of these
statements. The Company cautions investors that any such forward-looking
statements are not guarantees of future performance and that actual
events or results may differ materially from those statements. For more
information about factors that could impact the Company's business and
cause actual results to differ materially from forward-looking
statements, investors should refer to the Company's filings with the SEC
(including, but not limited to, the information set forth under the
captions "Risk Factors" and "Cautionary Statement on Forward-Looking
Statements" in the Company's Annual Report on Form 10-K for the year
ended December 31, 2016 and subsequent Quarterly Reports on Form 10-Q).
Copies of these filings may be obtained from the Company's website at http://www.colgatepalmolive.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171218005221/en/
John Faucher, 212-310-3653
Source: Colgate-Palmolive Company
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