Alberto Culver grows U.K. skin-care portfolio
This article was originally published in The Tan Sheet
Executive Summary
Keeping with its strategy to grow the skin-care side of its business, the Melrose Park, Ill.-based firm acquires No. 2 U.K. skin-care brand Simple Health & Beauty Ltd. from private equity firm Duke Street. In the £240 million ($392 million) "substantially" cash deal announced Dec. 14, Alberto Culver gains Simple Health & Beauty's portfolio of more than 140 skin- and personal-care products. Morningstar analyst Lauren DeSanto wrote in a same-day note the price Alberto paid for Simple "is not outside the range for high-quality brands, particularly in skin care," adding with Alberto's strong U.K. hair-care presence "it's not surprising that the firm would look to build on this position into another category." Alberto Culver, which already markets St. Ives and Noxzema skin-care products, reported sales of $1.43 billion and profit of $119.4 million for its fiscal 2009