German group Beiersdorf (BDF) is to acquire suncare brand Coppertone from pharmaceuticals company Bayer, also based in Germany, for $550m.
Coppertone, founded in 1944, was the first suncare brand to launch in the US market. Headquartered in New Jersey, US, the brand is also present in Canada and China and generated sales of $213m in 2018.
The deal will see BDF acquire the global product rights to Coppertone and incorporate some 450 personnel based in the US, Canada and China, working in areas including research and development and marketing. BDF will also take over Coppertone’s US production facility in Cleveland, Tennessee.
BDF said in a statement that the acquisition would allow it to expand its portfolio and advance what it claims is a leading position in suncare, particularly in North America. The company currently sells suncare under the brands Nivea Sun and Eucerin Sun. Bayer, meanwhile, is divesting Coppertone to focus on its core over-the-counter health business.
“This transaction demonstrates our commitment towards competitive, sustainable growth and investment in skin care,” said BDF ceo Stefan de Loecker. “Skin care is at the heart of Beiersdorf – and caring for skin health through sun protection has been an essential pillar of our business for over 60 years.”
The acquisition is expected to close in the third quarter of 2019 and is subject to regulatory approval.
In the first quarter of 2019, BDF posted reported sales growth of 1.2% to €1.60bn, while in organic terms, sales rose by 6.7%.