PARIS – L’Oréal said it has signed an agreement to acquire Skinbetter Science, a US-based skincare brand distributed by a doctor.
Financial terms were not disclosed.
Skinbetter Science is one of the fastest growing medically approved skincare brands in the country, according to the French beauty giant. Based 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’ search for self-care.
The global skin care market is expected to generate sales of $131 billion this year, according to Future Market Insights, which predicts the segment will grow rapidly, with 8.1% compound annual growth during 2022-2032, to 230.21 billions of dollars.
Skinbetter Science products have active ingredients with antiaging, moisturizing, cleansing, exfoliating, exfoliating and sun protection benefits. They are sold primarily through a network of dermatologists, plastic surgeons and aesthetic practices by a medical sales team.
Skinbetter Science posted sales of nearly $95 million in the 12 months ended Aug. 31.
Company management will remain and Skinbetter Science is to be integrated into L’Oréal under Christina Fair, president of L’Oréal USA’s Active Cosmetics division.
“Skinbetter Science is a perfect addition to the Active Cosmetics Division’s brand portfolio,” Myriam Cohen-Welgryn, global president of L’Oréal’s Active Cosmetics Division, said in a statement released Friday morning. “He will contribute greatly to the L’Oréal Active cosmetics division’s long-standing mission to pioneer health and beauty with advanced science-based skin care innovations. I am confident that this high-growth American brand has great international potential.”
David Greenberg, CEO of L’Oréal USA and president of the North America Zone, said: “I am confident that the brand will strengthen our dermatology beauty business in North America, a region we believe has strong growth potential. Together, with Christina Fair and our Active Cosmetics Division, we see an opportunity to leverage the strength of the fantastic team behind the brand and strengthen the relationship of trust they have built with their healthcare professional partners to take on this part of the business. us the next level.”
The closing of the deal is expected to take place in the early fourth quarter of this year.
L’Oréal’s Active Cosmetics Division was the group’s fastest growing in the second quarter and first half of this year. In the quarter ended June 30, the division’s revenue rose 33.9 percent on a reported basis and 23.8 percent on a like-for-like basis.
In the first half of 2022, sales of the Active Cosmetics Division reached €2.54 billion, representing a gain of 28% in reported terms and 20.9% in like-for-like terms.
L’Oréal said that during that period, the segment grew much faster than the skin cosmetics market. The company highlighted a “remarkable” performance in North America, Europe and the South Pacific, the Middle East, North Africa, Sub-Saharan Africa or the SAPMENA-SSA zone.
L’Oréal has a proven track record of developing dermatologist-backed skincare brands.
CeraVe is a prime example. The company acquired the US-based skin-created brand in 2017. At the time, CeraVe generated estimated annual revenue of approximately $140 million. Today, its sales have crossed the $1 billion mark.