Scott’s Liquid Gold Inc. has acquired hair and scalp-care brands Prell, Denorex and Zincon from Ultimark Products Inc. for $9.1 million.
Denver-based Scott’s develops household, skin-care and hair-care products. In beauty, the business makes Alpha Skin Care and Neoteric Diabetic healing cream. Scott’s is also the exclusive distributor in the U.S. of Montagne Jeunesse/7th Heaven face masque and skin-care sachets, plus the exclusive specialty retail distributor of Batiste dry shampoo. The business is best known for its namesake brand, Scott’s Lquid Gold, a wood cleaner and preservative.
Prell’s product line includes shampoo and conditioner, and Denorex and Zincon make dandruff treatment products, including shampoo.
“Prell, Denorex and Zincon products will be great additions to our existing health and beauty care portfolio of products,” said Mark Goldstein, chairman, president and chief executive officer of Scott’s. “This investment represents an important strategic opportunity that will benefit our shareholders, consumers, customers and employees.”
The sale leaves Ultimark with Porcelana, a skin-care brand that aims to fade blemishes and discolorations.
In connection with the deal, Scott’s terminated its revolving credit facility with Summit Financial Resources LP and entered into a new loan with J.P. Morgan Chase Bank NA. The new facility consists of a $2.4 million term loan and $4 million revolving credit facility, which will be used in part to finance the acquisition. The revolver will also provide working capital. Threadstone Advisors LLC advised SLGD on the deal.
The deal follows a handful of other acquisitions in the beauty space. Earlier in July, Shiseido inked a deal for the Dolce & Gabbana fragrance license. Before that, L’Oréal signed an agreement to buy Atelier Cologne, and Beautycounter made a deal to buy Nude Skincare Inc., founded by Ali Hewson, who is married to rock star Bono. Revlon also made a deal recently, agreeing to the $870 million acquisition of Elizabeth Arden in June. Beauty dealmakers are expecting more acquisitions to come in 2016, they have said.