PARIS — Beiersdorf is moving further into the sun-care business with the acquisition of the Coppertone brand from Bayer for $550 million.
With the purchase, Beiersdorf is entering the largest sun-care market in the world, North America, and strengthening its foothold there.
“This transaction demonstrates our commitment toward competitive, sustainable growth and investment in skin care outlined in the new CARE+ strategy,” Beiersdorf chief executive officer Stefan De Loecker said in a statement. “Skin care is at the heart of Beiersdorf — and caring for skin health through skin protection has been an essential pillar of our business for over 60 years.”
He added: “The sun-care pioneers of Europe and the U.S. will join forces under one umbrella to provide trusted sun protection to consumers around the world.”
Coppertone, the first sun-care brand launched in the U.S., was founded in 1944. The Whippany, N.J.-based company sells products also in Canada and China. Last year it registered sales of $213 million.
In North America, Beiersdorf already operates skin-care brands Nivea, Eucerin, Aquaphor and La Prairie.
For Bayer, the divestiture enables the company to focus on building its over-the-counter brands, core to its business.
Beiersdorf is to acquire the global rights to Coppertone and take over about 450 of the brand’s employees, plus a production facility in Cleveland, Tenn. The deal is expected to close in the third quarter of 2019.
Beiesdorf’s financial advice came from Credit Suisse and Perella Weinberg Partners, while Freshfields Bruckhaus Deringer served as legal advisers. Sawaya Partners and Citi were Bayer’s financial advisers, and Covington & Burling gave the company legal advice.