Paris – L’Oréal said it has entered into an agreement to acquire Skinbetter Science, a US-based doctor-dispensed skin care brand.
Financial terms were not disclosed.
Skinbetter Science is one of the fastest growing medical skincare brands in the country, according to the French beauty giant. The Arizona-based company was co-founded in 2016 by pharmaceutical industry professionals Jonah Shackney, Justin Smith and Seth Rodner.
Skincare is the hottest beauty category today, thanks in part to the coronavirus pandemic, which has intensified consumer quest for self-care.
According to Future Market Insights, the global skin care market is expected to generate $131 billion in sales this year, and the segment is developing rapidly, growing at a CAGR of 8.1% from 2022 to 2032, reaching 230.21 billion. projected to reach US$.
SkinBetter Science products contain active ingredients with anti-aging, moisturizing, cleansing, exfoliating, peeling and sun protection properties. They are marketed primarily through a network of medical aesthetic practices by dermatologists, plastic surgeons, and medical sales teams.
Skinbetter Science made nearly $95 million in sales in the 12 months ending August 31st.
The company’s management will continue and Skinbetter Science will be integrated into L’Oréal under Christina Fair, President of L’Oréal USA’s Active Cosmetics Division.
“Skinbetter Science is the perfect complement to the Active Cosmetics Division’s portfolio of brands,” said Myriam Cohen-Welgryn, Worldwide President of L’Oréal’s Active Cosmetics Division, in a statement released Friday morning. increase. “This is a significant contribution to L’Oréal Active Cosmetics Division’s long-standing mission to pioneer health and beauty with advanced, science-based skincare innovations. I am sure there is.”
David Greenberg, L’Oréal USA Chief Executive Officer and North America Zone President, said: Leveraging the power of the amazing team behind the brand, along with Christina Fair and Active Her Cosmetics Division, and strengthening the trusting relationships they have built with their healthcare professional partners, we are expanding this part of our business. next level. ”
Completion of the transaction is expected to occur early in the fourth quarter of this year.
L’Oréal’s active cosmetics division saw the fastest growth in the group in the second quarter and first half of the year. In his three months ended June 30, the segment’s revenue increased 33.9% on a reported basis and 23.8% on a like-for-like basis.
In the first six months of 2022, the Active Cosmetics division reached €2.54 billion in sales, up 28% reportedly and 20.9% at constant terms.
L’Oréal said the sector grew much faster than the dermocosmetics market during this period. The company boasts “notable” performance in North America, Europe, South Pacific, Middle East, North Africa, Sub-Saharan Africa or his SAPMENA-SSA zone.
L’Oréal has a proven track record of growing dermatologist-backed skin care brands.
CeraVe is a prime example of this. The company acquired his US-based brand of dermal products in 2017. At the time, CeraVe had estimated annual revenues of approximately $140 million. Today, that sales have crossed his $1 billion threshold.