PARIS — L’Oréal said it has signed an agreement to acquire Skinbetter Science, a physician-dispensed, U.S.-based skin care brand.
Financial terms were not disclosed.
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Skinbetter Science is among the fastest-growing medical-dispensed skin care brands in the country, according to the French beauty giant. Headquartered in Arizona, the company was cofounded in 2016 by Jonah Shacknai, Justin Smith and Seth Rodner, pharmaceutical industry professionals.
Skin care is the hottest beauty category today, thanks partly to the coronavirus pandemic, which has intensified consumers’ quest for self care.
The global skin care market is expected generate sales of $131 billion this year, according to Future Market Insights, which projects the segment to develop rapidly, with 8.1 percent compound annual growth during the 2022-2032 period, to reach $230.21 billion.
Skinbetter Science products have active ingredients with antiaging, moisturizing, cleansing, exfoliating, skin-peeling and sun-protection benefits. They are sold primarily through a network of dermatologists, plastic surgeons and medical aesthetic practices by a medical sales team.
Skinbetter Science generated sales of almost $95 million in the 12 months ended Aug. 31.
“Skinbetter Science is a perfect complement to the Active Cosmetics Division’s brand portfolio,” Myriam Cohen-Welgryn, worldwide president of L’Oréal’s Active Cosmetics Division, said in a statement released Friday morning. “It will contribute greatly to the L’Oréal Active Cosmetics Division’s longstanding mission to pioneer health and beauty with advanced science-based skin care innovations. I am confident this high-growth U.S. brand has great international potential.”
David Greenberg, chief executive officer of L’Oréal USA and president, North America Zone, said: “I am confident the brand will strengthen our North America dermatological beauty business, an area that we believe has dynamic growth potential. Together, with Christina Fair and our Active Cosmetics Division, we see an opportunity to draw on the strength of the fantastic team behind the brand and reinforce the relationship of trust that they have built with their healthcare professional partners to take this part of our business to the next level.”
The deal’s closing is expected to take place early in the 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 three months ended June 30, the division’s revenues rose 33.9 percent on a reported basis and 23.8 percent on a like-for-like basis.
In the first six months of 2022, the Active Cosmetics Division’s sales reached 2.54 billion euros, representing gains of 28 percent in reported terms and 20.9 percent in like-for-like terms.
L’Oréal said that in the period, the division grew much faster than the dermocosmetics market. The company touted a “remarkable” performance in North America, Europe and the South Pacific, Middle East, North Africa, Sub-Saharan Africa, or SAPMENA-SSA, zone.
L’Oréal has a proven track record in growing dermatologist-backed skin care brands.
CeraVe is a prime example. The company acquired the derm-created, U.S.-based brand in 2017. At the time, CeraVe generated estimated yearly revenues of about $140 million. Today, its sales have surpassed the $1 billion threshold.