PARIS – L’Oréal said it has signed an agreement to acquire Skinbetter Science, a US-based physician-recommended skincare brand.
Financial terms were not disclosed.
Skinbetter Science is among the fastest-growing medical skincare brands in the country, according to the French beauty giant. Headquartered in Arizona, the company was co-founded in 2016 by Jonah Shacknai, Justin Smith and Seth Rodner, professionals in the pharmaceutical industry.
Skincare is the hottest beauty category today, thanks in part to the coronavirus pandemic, which has heightened consumers’ desire to take care of themselves.
The global skin care market is expected to generate sales of $131 billion this year, according to Future Market Insights, which predicts the segment to grow rapidly, with 8.1 percent compound annual growth during the period 2022-2032 to reach $230.21 billion.
Skinbetter Science products have active ingredients with anti-aging, moisturizing, cleansing, exfoliating, skin exfoliating and sun protection benefits. They are primarily sold through a network of dermatologists, plastic surgeons and medical aesthetic practices by a medical sales team.
Skinbetter Science generated sales of nearly $95 million in the 12 months ended Aug. 31.
Company management will remain and Skinbetter Science will be integrated into L’Oréal under the leadership of Christina Fair, President of Active Cosmetics at L’Oréal USA.
“Skinbetter Science is an ideal addition to the Active Cosmetics Division’s portfolio of brands,” Miriam Cohen-Welgreen, global president of L’Oréal’s Active Cosmetics Division, said in a statement released Friday morning. “This will significantly contribute to L’Oréal Active Cosmetics Division’s long-standing mission to be a pioneer in health and beauty with advanced science-based innovations in skin care. I am convinced that this fast-growing American brand has great international potential.”
David Greenberg, L’Oréal USA CEO and President, North America Zone, said: “I am confident that the brand will strengthen our dermatological beauty business in North America, an area 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 strengthen the relationship of trust they have built with their professional healthcare partners to bring this part of our business to the next level.”
The deal is expected to close at the beginning of the fourth quarter of this year.
L’Oréal’s active cosmetics division was the group’s fastest-growing division in the second quarter and first half of this year. In the three months ended June 30, the division’s revenue grew 33.9 percent on a reported basis and 23.8 percent on a comparable basis.
In the first six months of 2022, sales of the Active Cosmetics division reached 2.54 billion euros, representing gains of 28 percent in reported terms and 20.9 percent in comparable terms.
L’Oréal said that during this period the division grew much faster than the dermocosmetics market. The company touts “outstanding” performance in North America, Europe and the South Pacific, the Middle East, North Africa, Sub-Saharan Africa or the SAPMENA-SSA region.
L’Oréal has a proven track record of growing dermatologist-backed skincare brands.
CeraVe is a prime example. The company acquired the derm-created, US-based brand in 2017. At the time, CeraVe generated approximately $140 million in annual revenue. Today, its sales have surpassed the $1 billion mark.