– J&J ACQUISITION: Johnson & Johnson has acquired Chinese cosmetics firm Dabao for an undisclosed sum. The company stated that the acquisition of Beijing Dabao Cosmetics Co. Ltd. from Beijing Sanlu Factory and the Beijing Dabao Co. Ltd. Staff Shareholding Committee has been finalized following government approvals. “This transaction is an extension of our commitment to China,” said Jesse Wu, president of Johnson & Johnson (China) Investment Co. Ltd, a business unit that was established by J&J in China 10 years ago. Dabao, which markets a range of personal care products — including fragrances, skin care, color cosmetics and hair care — under an eponymous brand name, was launched in 1985. That same year, J&J established its first joint venture in China.
– FUNDING PRODUCT SAFETY: The House of Representatives passed a consumer product safety bill Wednesday that would increase the funding and staffing for the Consumer Product Safety Commission to $118 million in 2010 and to $136 million by 2015, from its fiscal 2008 level of $80 million. The legislation also would establish lower lead content standards in all children’s jewelry and toys, and establish an online database to allow the public to review reports about product safety from consumers, the government and child care and health care providers. It also would increase the limit of civil fines to $15 million from $1.8 million, require third-party testing of all children’s products and direct the Government Accountability Office to conduct a study on the use of formaldehyde in the manufacture of textile and apparel products. The Senate could take up the bill this week.
This story first appeared in the July 31, 2008 issue of WWD. Subscribe Today.