Colgate-Palmolive is buying its way into the professional beauty world.The owner of Softsoap, Speed Stick and Tom’s of Maine is buying PCA Skin and EltaMD in two separate transactions. Combined, Colgate said the companies have about $100 million in revenue. Industry sources suggested it is a nearly even split, with each company generating around $50 million in sales. Terms of the deal were not disclosed.PCA Skin, based in Scottsdale, Ariz., makes medical grade skin-care products that are sold through dermatologists, plastic surgeons and aestheticians. The business has been backed by Norwest Venture Partners for roughly five years. During that time, Michael Lorrain joined the business from L’Oréal’s Active Cosmetics Division as chief executive officer of PCA. The business also hired Chris Payne as chief marketing officer in 2016.PCA is well-known for its peels and retinol products, and recently added Massage Envy to its distribution list.“As far as channels, [PCA has] always been a very focused aesthetician brand,” said Sonya Brown, managing partner at Norwest. “Thinking about dermatologist and plastic surgery offices was a small percent, but that was probably the fastest-growing side of the business as we continued to focus and build a salesforce.”EltaMD sells sunscreen and skin-care products through doctors offices. The brand was acquired by Prairie Capital as part of the private equity firm’s 2012 acquisition of Swiss-American Products. Prairie declined to comment for this story.For Colgate, the two deals mark its first move into professional skin care. Colgate’s beauty and personal-care offerings include deodorant brands and Tom’s of Maine, which Colgate acquired in 2006 and makes lip balm and body lotions in addition to toothpaste and deodorant.“Adding a [fourth] pillar of growth — oral care, personal care, pet nutrition and now professional skin care — is a smart move and we believe this is a niche that Colgate can grow at a reasonable cost — given lack of exposure to larger CPG companies,” wrote RBC Capital Markets analyst Nik Modi in a note Monday.“PCA Skin and EltaMD form an exciting combination for Colgate’s entry into the professional skin-care category,” said Ian Cook, Colgate chairman, president and chief executive officer. “These high-growth, high-margin brands will strengthen our global personal-care business. Their complementary product portfolios and sales forces, strong professional support and similar distribution channels will advance Colgate’s presence in the premium global skin care category. Furthermore, these businesses will benefit from Colgate’s decades long legacy of working with professional experts to deliver recommendations that benefit their patients.”Wells Fargo Securities LLC advised Colgate on the acquisition of EltaMD. Financo and Houlihan Lokey advised PCA.
Exclusive: @longchamp is planning to stage its first official runway show at New York Fashion Week this fall. The French leather goods firm has expanded into ready-to-wear as part of its repositioning as a lifestyle brand. The show, scheduled for September 8, will also cap the brand’s 70th anniversary celebration. Get all the details on WWD.com. #wwdnews #wwdfashion (📷: @dominiquemaitre)
The Duke and Duchess of Sussex undertook their first overseas engagement as a married couple in Dublin. The trip included multiple events and outfits changes, including this black dress by @emiliawickstead that Meghan Markle wore for a party at the British Ambassador’s home. #wwdfashion #royals
At 20 years old – and with an estimated net worth of $900 million - @kyliejenner is the youngest person to ever make @forbes’ annual list of America’s Richest #SelfMadeWomen. “It’s incredible to be recognized for something I’m so passionate about, and I’m really grateful for that. I’ve always loved makeup and worked really hard to bring the first lip kit to the market,” said Jenner on founding @kyliecosmetics. See who else is on the list on WWD.com. #wwdnews #wwdbeauty (📷: @rainerhosch)
“The collection is inspired by Tulum and the Mayan Riviera – its laid-back luxury, life of cabanas, untouched coastline, natural habitats, exotic cocktails and jungle parties with renowned DJs,” said Matteo Maniatty, creative director and cofounder of @descendantofthieves, on the brand’s inspiration for its latest collection. See more designer sketches and inspirations on WWD.com. #wwdfashion #nyfwmens #nyfw
@riccardotisci17 is releasing a limited-edition capsule collection as part of his anticipated runway debut for @burberry in September. Delivered in a series of instant drops, this is the second Burberry capsule collection announced since Friday, when Tisci broke the news on his collaboration with @viviennewestwood. Get all the details on WWD.com. #wwdfashion #wwdnews
“It’s like a Cinderella story. You get a little fake, you get a little real, you put it together and voilà,” said legendary rapper Slick Rick, who helped pioneer the merge of luxury and streetwear. WWD’s @ariahughes spoke to @therulernyc about his jewelry collection, his collaboration with @bally and how the industry has evolved – link in bio. (📷: @kristaschlueter)
@ragandbone and @eminem are teaming up on a special capsule collection of streetwear pieces. Sold at a one-day pop-up in London’s Soho on Friday, the collection features three different T-shirt designs and a hoodie. The capsule is set to kick off the rest of Eminem’s shows in his European Revival Tour, which ends on Sunday. Get all the details on WWD.com. #wwdfashion