L'Oréal Acquires Skinbetter Science
- Chaileedo Press
- Sep 26, 2022
- 2 min read
Updated: Sep 27, 2022
Skinbetter Science is the addition to the brand portfolio of L'Oréal's Active Cosmetics Department.
On September 23, L'Oréal announced on its official website that it had signed an agreement to acquire Skinbetter Science, an American skincare brand, with specific terms not yet disclosed.
Publicly available information shows that Skinbetter Science was co-founded by pharmaceutical industry professionals Jonah Shacknai, Justin Smith, and Seth Rodner in 2016. According to L'Oréal, it is now one of the fastest-growing medical skincare brands in America. Skinbetter Science is known for developing innovative products with active ingredients for anti-aging, moisturizing, cleansing, exfoliating, and sun protection.
Currently, Skinbetter Science's products are available primarily through a network of leading dermatology, plastic surgery, and medical aesthetic practices in the United States. For the past 12 months ended August 31, 2022, Skinbetter Science generated sales of nearly $95 million.
Upon completion of the acquisition, the current brand leadership team will continue to operate the business and will be integrated under the leadership of Christina Fair, President of L'Oréal American Active Cosmetics Department, which is L'Oréal's fastest growing department. In the three months ended June 30, the department's revenues grew 33.9% on a reported basis and 23.8% on a like-for-like basis.
L'Oréal's financial report for the first half of 2022 shows that the L'Oréal Group achieved €18.36 billion for the period ended June 30, 2022, up 13.5% year-on-year, with a consolidated growth of 20.9% and an operating margin of 20.4%. In particular, North Asia, where China is located, has become the L'Oréal Group's number one market, with 10.5% year-on-year growth and 20.3% growth on a consolidated statement basis.
For the Chinese market, Skinbetter Science has opened an overseas flagship store in Tmall International, with products including essence, night cream, eye cream, mask, premier cream, sunscreen stick, etc. The prices of individual products in the essence category range from 1,290-1,430 yuan ($180.44-$200.03).
Jonah Shacknai, founder and executive chairman of Skinbetter Science, said he looks forward to working with a global organization like L'Oreal. He believes that L'Oréal's leadership, resources, and international reach will help Skinbetter Science maximize its future value.
In response to the acquisition, Myriam Cohen-Welgryn, Global President of L'Oréal Active Cosmetics Department, expressed that Skinbetter Science is a perfect addition to L'Oréal Active Cosmetics' brand portfolio and will further contribute to the long-term mission of L'Oréal Active Cosmetics, and L'Oréal believes that this high-growth American brand has great potential for international growth.
David Greenberg, CEO of L'Oréal USA and President of L'Oréal North America, added that L'Oréal believes in the dynamic growth potential of the medical skincare area. It can leverage the strength of the talented team behind the brand and enhance the collaboration between the Active Cosmetics Department and the healthcare specialty area to take this part of L'Oréal's business to the next level.
It is known that the transaction is expected to finish in the early fourth quarter of 2022.
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