Johnson & Johnson said Thursday it would acquire personal-care products company Vogue International for about $3.3 billion in cash, a move that would expand its position in the hair care market and potentially strengthen its consumer products segment.
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Vogue, based in Clearwater, Fla., was partially owned by the Carlyle Group, which took a stake in 2014.
Vogue was founded by Christopher in 1987 and had revenue of $319 million for the 12 months ended March 31, 2016, according to the Moody’s report.
Shares of Johnson & Johnson were trading up 1.1% Thursday at $114.02, with a consensus analyst price target of $117.44 and a 52-week trading range of $81.79 to $115.00.
With the acquisition, Johnson & Johnson will add brands such as OGX shampoos and FX hair-styling products to its consumer portfolio, which includes Neutrogena and Clean & Clear.
This is J&J’s biggest acquisition in its 128 year history.
Last year, J&J’s consumer business had $13.5 billion sales, down 8% largely due to a strong dollar. The company is expected to face more talc lawsuits.
Vogue’s hair care products have gained popularity, helped by colourful packaging that makes them stand out in drugstore aisles. In the first quarter of 2016, year-over-year sales in the consumer division fell 0.2% worldwide and 0.1% in the United States, while across the company sales rose 0.6% worldwide and 7.2% in the United States.
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The transaction should close in Q3.
