Hands raised if, at times, you feel you and your spending are single-handedly keeping the beauty economy afloat. Consider yourself in good company: L'Oréal just dropped some major cash on three new brands.
This week, the cosmetics company, which already owns big names like Lancôme, Kiehl’s, Clarisonic, Garnier, Maybelline New York, and It Cosmetics in addition to its own namesake line, shelled out a reported $1.3 billion to buy skin-care brands CeraVe, AcneFree, and Ambi from the Canadian company Valeant Pharmaceuticals International, according to a report from WWD. In addition to being no-fuss skin-care favorites, the newly acquired brands also have accessible price points; together, the trio generates a whopping $168 million each year.
More buzzy beauty-industry news:
- Transgender Model Hari Nef Stars in New L'Oréal Beauty Campaign
- Breaking: Bobbi Brown Leaving Her Namesake Cosmetics Line
- Estée Lauder Just Bought Too Faced Cosmetics (Update)
And one of the big reasons we're so pleased with the acquisitions is that all three of the brands—CeraVe, AcneFree, and Ambi—are ones that we've tried, tested, and touted over the years.
has appeared in countless editor roundups as a simple, affordable, and effective daily face lotion with sunscreen. For under $15, you get a nonwhite and nonirritating sunscreen that contains sunscreen, hyaluronic acid, and niacinamide, a B3 vitamin that strengthens and calms the complexion. The salicylic- and glycolic acid–basedAcneFree Body Clearing Acne Spray
($9) pretty much always comes up whenever we interview dermatologists about effective ways to zap body acne. (And because it's salicylic acid, not benzoyl peroxide, it won't bleach your clothes.) AndAmbi Skincare Fade Cream
($5) is also a perennialAllure
fave, with four years of Best of Beauty honors; it's an incredibly effective (and crazily affordable) brightener for fading dark marks thanks to 2 percent hydroquinone.
The acquisition will almost double the size of L’Oréal’s Active Cosmetics Division, which is industry speak for "skin-care division" and currently includes heavy hitters like Vichy, La Roche-Posay, and SkinCeuticals. That's the company's way of saying, loudly and without hesitation, that skin is very, very important to its business. And for good reason. According to IBISWorld, an industry and market research firm, 28.9 percent of all beauty revenue comes from complexion care alone. "A focus on anti-aging treatments, consumer concerns about appearance, and advances in technology have paved the way for this segment's ascent," IBISWorld analyst Anya Cohen said in a statement, adding that spending on men's skin products has also seen growth.
The latest beauty buy signals a continuation of L'Oréal’s acquisition-forward 2016. Last year, the brand, which is now the largest beauty company in the world, threw around some big offers, including the $1.2 billion purchase of It Cosmetics and the acquisition of Atelier Cologne. Next stop for L'Oréal? Total beauty world domination. (And really good skin for the rest of us.)
Now learn how to create a two-ingredient facial scrub that will invigorate your skin: