TAGS: Skin Care Sun Care
Beiersdorf and Bayer have announced that Beiersdorf has entered into a definitive agreement to buy the Coppertone™ business from Bayer for skin care through sun protection, for a purchase price of 550 million U.S. dollars.
Caring for Skin Health
Founded in 1944, Coppertone™ was the first sun care brand launched in the US market. It is headquartered in Whippany, New Jersey, USA, and present in the United States, Canada, and China. Coppertone™ generated sales of 213 million U.S. dollars in 2018. Through the acquisition of Coppertone™, Beiersdorf is entering the world’s largest sun care market and strengthening its presence in North America. Coppertone™ will become the fifth brand in Beiersdorf’s skin care portfolio in North America, beside NIVEA, Eucerin, Aquaphor, and La Prairie. The divestiture enables Bayer to focus on building its core over-the-counter brands.
“This transaction demonstrates our commitment towards competitive, sustainable growth and investment in skin care outlined in the new C.A.R.E.+ strategy. 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,” said Stefan De Loecker, Chief Executive Officer of Beiersdorf. “We are pleased to offer the iconic Coppertone™ brand and its dedicated, experienced employees a new home next to NIVEA Sun and Eucerin Sun. The sun care pioneers of Europe and the US will join forces under one umbrella to provide trusted sun protection to consumers around the world. We are convinced that Coppertone™ and its team will add complementary expertise to our leading brand portfolio and significantly strengthen our position particularly in the US.”
Exciting Innovative Products
“We believe that we have found the right partner in Beiersdorf to continue to invest in and grow the Coppertone™ brand,” said Heiko Schipper, member of Bayer’s Board of Management and President of Consumer Health. “Since Bayer took ownership of Coppertone™ in late 2014, we have made progress in revitalizing the brand and developing an exciting pipeline of innovative products thanks to the dedicated efforts of many employees, to whom we are grateful. We look forward to seeing the brand taken to the next level of success under Beiersdorf’s ownership.”
Beiersdorf will acquire the global product rights to Coppertone™ and take over approximately 450 dedicated brand personnel in the United States, Canada, and China including Sales and Marketing, Research & Development and others, as well as a production facility in Cleveland, Tennessee, USA.
Transaction to Close in 2019
The transaction is expected to close in the third quarter of 2019 subject to the satisfaction of customary closing conditions, including approval by the competition authorities.
Sawaya Partners and Citi acted as financial advisors to Bayer, while Covington & Burling provided legal advice. Beiersdorf received financial advice by Credit Suisse and Perella Weinberg Partners, while Freshfields Bruckhaus Deringer acted as legal advisor.
Source: Beiersdorf