J&J to buy Vogue for $3.3bn

Jun 02, 2016, 1:02 PM EDT
(Source: Rodrigo Díaz/flickr)
(Source: Rodrigo Díaz/flickr)

Johnson & Johnson will buy hair care products maker Vogue for $3.3 billion.

Reuters reports:

Johnson & Johnson (JNJ.N) said on Thursday it would acquire Vogue International for $3.3 billion, adding brands such as OGX shampoos and FX hair styling products to its consumer portfolio that includes Neutrogena and Clean & Clear. Vogue's hair care products have gained popularity, helped by colorful packaging that makes them stand out in drugstore aisles. The privately held company has focused on increasing its presence in drugstores and is spending more on buying shelf space than on consumer advertising. Buyout firm Carlyle Group LP (CG.O) acquired a 49 percent stake in the company in 2014.
USA Today writes:

"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," J&J consumer chairman Jorge Mesquita said in a statement. The deal for Vogue will hardly dent J&J's finances. The health care, beauty and personal care products conglomerate is one of only two U.S. non-financial companies that still retain a perfect AAA credit rating. The other is Microsoft. www.usatoday.com/story/money/2016/06/02/johnson-johnson-vogue-acquisitio...

Bloomberg notes:

The purchase will make J&J the fourth-largest company in the U.S. hair-care market, up from the eighth-place spot it currently holds, said Mark Boston, a company spokesman. He declined to comment on revenue for that business, revenue at Vogue or the ownership split for the company.