Sales: $7.1 billion for baby, oral and skin care products. Corporate sales: $70.1 billion.
Key Personnel: Alex Gorsky, chairman and chief executive officer; Dominic J. Caruso, executive vice president, chief financial officer; Jorge Mesquita executive vice president, worldwide chairman, consumer.
Major Products: Listerine oral care, Johnson’s Baby personal care, Neutrogena and Aveeno skin care products.
New Products: Aveeno—Absolutely Ageless, Neutrogena—SkinClearing Complexion Perfector, Pink Grapefruit Shower Pack; OGX personal care, FX hair styling products, and Proganix and Maui Moisture hair care lines.
Comments: Johnson & Johnson struck a victory pose this spring when it acquired Vogue International for $3.3 billon. Vogue markets an array of personal care brands, including the OGX collection of shampoos, conditioners, treatments, styling products, body care and bath products; the FX line of hair styling products, and the Proganix and Maui Moisture hair care lines. Vogue’s annual sales are estimated at $300 million.
“Our acquisition of Vogue International’s full line of leading advanced hair care products sold in the US and in 38 countries will strengthen our global presence in this important category,” said Jorge Mesquita, worldwide chairman, consumer, Johnson & Johnson. “Vogue International’s commitment to quality, innovation, and consumer preference complement our consumer portfolio, while also presenting attractive hair care category growth opportunities for Johnson & Johnson.”
The closing is subject to antitrust clearance and other customary closing conditions. The transaction is expected to close during the third quarter of 2016. The acquisition comes at a time when J&J could use a boost.
J&J’s skin care sales fell 6% last year to $3.5 billion, due to negative currency impact. Higher sales of Neutrogena and Aveeno were offset by lower sales in in China.
Sales of baby care products fell 8.7% to $2.0 billion. Sales gains of 1.2% were wiped out by currency’s impact of 9.9%.
Oral care sales fell 4.1% to $1.6 billion, as growth of 5.2% was offset by negative currency impact of 9.3%.
For the first quarter of 2016, baby care sales fell 11.7% to $451 million, and oral care and skin care sales each dropped 4.5% to $385 million and $862 million, respectively.