L’Oréal to Acquire Skinbetter Science – WWD

PARIS – L’Oréal said it has signed an agreement to acquire Skinbetter Science, a US-based skincare brand distributed by doctors.

Financial terms were not disclosed.

According to the French beauty giant, Skinbetter Science is among the fastest growing medical skincare brands in the country. Headquartered in Arizona, the company was founded in 2016 by pharmaceutical industry professionals Jonah Shacknai, Justin Smith and Seth Rodner.

Skincare is the hottest beauty category today, thanks in part to the coronavirus pandemic, which has intensified consumers’ pursuit of personal care.

According to Future Market Insights, which predicts the segment to develop rapidly and reach $230.21 billion with 8.1 percent compound annual growth in 2022-2032, the global skincare market is expected to generate $131 billion in sales this year.

Skinbetter Science products have active ingredients with anti-aging, moisturizing, cleansing, exfoliating, exfoliating and sun protection benefits. They are primarily sold by a medical sales team through a network of dermatologists, plastic surgeons, and medical aesthetic practices.

Skinbetter Science generated approximately $95 million in sales in the 12 months ending August 31.

The management of the company will continue and Skinbetter Science will be integrated into L’Oréal under Christina Fair, head of L’Oréal USA Active Cosmetics Division.

“Skinbetter Science perfectly complements the Active Cosmetics Division’s brand portfolio,” Myriam Cohen-Welgryn, global head of L’Oréal’s Active Cosmetics Division, said Friday morning. “This will greatly contribute to L’Oréal’s Division of Active Cosmetics’ longstanding mission to pioneer health and beauty through science-based skincare innovations. I am confident that this high-growth US brand has great international potential.”

David Greenberg, CEO of L’Oréal USA and President of North America Region, said: “I am confident that the brand will strengthen our North American dermatological beauty business, which we believe has the potential for dynamic growth. Together with Christina Fair and our Active Cosmetics Division, we see an opportunity to leverage the strength of the great team behind the brand and reinforce the trust they have built with their healthcare professional partners to bring this part of our business to the world. Next level.”

The closing of the deal is expected in the early fourth quarter of this year.

L’Oréal’s Active Cosmetics Division was the group’s fastest growing division in the second quarter and first half of this year. In the three months ended June 30, the division’s revenues rose 33.9 percent on a reported basis and 23.8 percent on a similar basis.

In the first six months of 2022, sales of the Active Cosmetics Unit reached €2.54 billion, with a gain of 28 percent in reported terms and 20.9 percent in similar terms.

L’Oréal said that during this period, the division grew much faster than the dermocosmetics market. The company performed “remarkable” in the North America, Europe and South Pacific, Middle East, North Africa, Sub-Saharan Africa or SAPMENA-SSA region.

L’Oréal has a proven track record in growing dermatologist-backed skincare brands.

CeraVe is the best example. The company acquired the US-based brand created by derm in 2017. At that time, CeraVe had an estimated annual revenue of approximately $140 million. Today, its sales have crossed the $1 billion threshold.

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