By Carrie Mellage
The recent news of L’Oréal’s acquisition of Pacific Bioscience Laboratories, Inc., the marketer of Clarisonic, comes as no surprise to us at Kline. L’Oréal has a long and solid history of growing its business by acquiring and developing dynamic brands… Matrix, Kiehl’s, Skinceuticals, and Essie, just to name a few. L’Oréal is a leader in the global and U.S. beauty market; it has deep pockets; and is quick to act on market trends. The firm is also reporting solid financial results against the backdrop of a tough economy, with its first three quarters of 2011 up 5.1% on a like-for-like basis. The acquisition will also help bolster L’Oréal’s position in skin care in the U.S., which is relatively weak compared to its global standing.
Likewise, Clarisonic is a logical acquisition candidate. It is the #1 brand in the explosive $1 billion at-home skin care devices market in the U.S. It has the unique premise of sonic technology in addition to being fashion-forward and trendy. As we had predicted in our recent market research report, At-home Skin Care Devices 2011: U.S. Market Analysis and Opportunities, the market is ripe for acquisition activity, and we are happy to see L’Oréal be one of the first to make a move here.
About the Author
Carrie Mellage is director, consumer products, Kline Group. She can be reached at 973-435-3412 or Carrie.Mellage@KlineGroup.com