Valeant Pharmaceuticals has entered into an agreement to sell its CeraVe, AcneFree and AMBI skincare brands to L’Oréal for $1.3 billion in cash. The CeraVe brand portfolio offers a range of skin care, including cleansers, moisturizers, sunscreens, healing ointments and a dedicated baby line; the AcneFree portfolio offers over-the-counter cleansers and acne treatments; and the AMBI brand portfolio features a range of products formulated for the needs of multicultural consumers that includes creams, cleansers and moisturizers in the face and body category. The product lines have annualized revenue of approximately of $168 million.
Valeant will use the proceeds from the sale to permanently repay term loan debt under its Senior Credit Facility. The transaction is expected to close in the first quarter of 2017, subject to customary closing conditions, including receipt of applicable regulatory approvals.
“We are pleased to announce the progress we are making in reshaping our product portfolio and driving value for our shareholders,” said Valeant CEO Joseph C. Papa. “The success of these products, and today’s transaction, is a testament to the Valeant teams who have impressively grown these brands over the past several years. We believe these products will benefit even further from the resources and capabilities of a global beauty company like L’Oréal, which is well equipped to build on the success of these brands and expand into new global markets. Our remaining consumer products business is well positioned for continued advancement within Valeant’s portfolio.”
