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By
Reuters API
Published
Jul 12, 2019
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Colgate to buy skin care business of France's Filorga for $1.69 billion

By
Reuters API
Published
Jul 12, 2019

Colgate-Palmolive Co said on Thursday it would buy the skin care unit of France’s Laboratoires Filorga Cosmétiques for 1.50 billion euros ($1.69 billion), as the consumer goods company bolsters its personal care business.


Colgate, which is known for its dental-care products, is looking to expand its presence in the high-margin personal care business and had acquired skin-care brands PCA Skin and EltaMD in 2017 - Reuters


Filorga’s anti-aging skin care products are sold in over 60 countries, with its largest markets being France, Italy, Spain and Greater China.

“This acquisition also provides Colgate entry into the fast-growing and sizeable travel retail channel, particularly in Asia,” Chief Executive Officer Noel Wallace said.

Colgate, which is known for its dental-care products, is looking to expand its presence in the high-margin personal care business and had acquired skin-care brands PCA Skin and EltaMD in 2017.

The Filorga transaction will be financed with a combination of debt and cash and is currently expected to close in the third quarter, Colgate said, adding that the deal is expected to have no impact on its diluted earnings per share in 2019.

Citi was Colgate’s financial adviser, while Goldman Sachs and BNP Paribas advised Filorga.

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