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L’Oréal Targets Active Cosmetics Segment

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By: Jamie Matusow

Editor-in-Chief

L’Oréal’s Active Cosmetics Division has been a top performer over the past few years, and now the world’s largest cosmetics company is hitting the mass market in a big way. An agreement with Valeant will add the skin care brands CeraVe, AcneFree and Ambi to L’Oréal’s portfolio for a cash purchase price of $1.3 billion. The three brands have annualized combined revenue of approximately $168 million.

CeraVe offers a range of advanced skin care products including cleansers, moisturizers, sunscreens, healing ointments and a baby line. Growth has reportedly topped 20% in the past two years. AcneFree markets and distributes OTC cleansers and acne treatments in the U.S., while Ambi distributes skin care products formulated for multicultural consumers. Both brands are distributed in drug stores, mass retailers and select online outlets.

Frédéric Rozé, president and CEO of L’Oréal USA, said, “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 skin care at accessible prices.”

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