Colgate Announces Agreement to Acquire Laboratoires Filorga Cosmétiques Skin Care Business
July 11 2019 - 4:15PM
Business Wire
As part of its strategy to focus on its higher-margin oral care,
personal care and pet nutrition businesses, and expanding its
portfolio in premium skin care, Colgate-Palmolive Company (NYSE:CL)
today announced that it has agreed to acquire the Laboratoires
Filorga Cosmétiques (Filorga) Skin Care Business for an equity
purchase price of €1,495.5 million (approximately US$1,690
million).
Filorga is a premium anti-aging skin care brand focused
primarily on facial care. Originally founded in France in 1978, the
brand is now sold in over 60 countries with its largest markets
being France, Italy, Spain and Greater China. The Filorga brand
leverages a multi-channel distribution strategy across pharmacy,
online, specialty stores and travel retail.
Noel Wallace, Colgate’s President and CEO commented, “Filorga is
a strong, premium-priced brand with distinctive positioning that
fits well within our long-term personal care growth strategy. We
are excited that this acquisition will add a high-growth,
profitable, global skin care asset to the Colgate portfolio with
the opportunity to drive continued growth through expanded
distribution and awareness. This acquisition also provides Colgate
entry into the fast-growing and sizeable travel retail channel,
particularly in Asia.”
The transaction will be financed with a combination of debt and
cash and is currently expected to close in the third quarter of
2019. The acquisition is conditioned upon receipt of regulatory
approvals in certain countries.
The transaction is expected to have no impact on diluted
earnings per share in 2019.
Wachtell, Lipton, Rosen & Katz and CMS Francis Lefebvre
Avocats acted as legal advisors and Citi acted as financial advisor
to Colgate-Palmolive on the transaction. Bredin Prat acted as legal
advisor and Goldman Sachs and BNP Paribas acted as financial
advisors to Filorga Initiatives on the transaction.
***
About Colgate-Palmolive: Colgate-Palmolive is a
leading global consumer products company, tightly focused on Oral
Care, Personal Care, Home Care and Pet Nutrition. Colgate sells its
products in over 200 countries and territories around the world
under such internationally recognized brand names as Colgate,
Palmolive, elmex, Tom's of Maine, Sorriso, Speed Stick, Lady Speed
Stick, Softsoap, Irish Spring, Protex, Sanex, Elta MD, PCA Skin,
Ajax, Axion, Fabuloso, Soupline and Suavitel, as well as Hill’s
Science Diet and Hill’s Prescription Diet. For more information
about Colgate’s global business, visit the Company’s website at
http://www.colgatepalmolive.com. To learn more about the Colgate
Bright Smiles, Bright Futures® oral health education program,
please visit http://www.colgatebsbf.com. CL-C
Cautionary Statement on Forward-Looking
Statements
This press release may contain forward-looking statements (as
that term is defined in the U.S. Private Securities Litigation
Reform Act of 1995 or by the Securities and Exchange Commission
(SEC) in its rules, regulations and releases) that set forth, among
other things, anticipated results based on management's plans and
assumptions and the timing of completion of the transaction. Such
statements may relate, for example, to the expected timing of the
closing of the transaction and the expected impact on 2019
earnings, among other matters. These statements are made on the
basis of the Company’s views and assumptions as of this time and
the Company undertakes no obligation to update these statements
whether as a result of new information, future events or otherwise,
except as required by law or by the rules and regulations of the
SEC. Moreover, the Company does not, nor does any other person,
assume responsibility for the accuracy and completeness of these
statements. The Company cautions investors that any such
forward-looking statements are not guarantees of future performance
and that actual events or results may differ materially from those
statements. For more information about factors that could impact
the Company's business and cause actual results to differ
materially from forward-looking statements, investors should refer
to the Company's filings with the SEC (including, but not limited
to, the information set forth under the captions “Risk Factors” and
“Cautionary Statement on Forward-Looking Statements” in the
Company’s Annual Report on Form 10-K for the year ended December
31, 2018 and subsequent Quarterly Reports on Form 10-Q). Copies of
these filings may be obtained from the Company's website at
http://www.colgatepalmolive.com.
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