Valeant to sell CeraVe, AnceFree, AMBI brands to L’Oréal for $1.3 billion cash

Valeant announced that it has entered into an agreement to sell its CeraVe, AcneFree and AMBI skin care brands to L’Oréal for $1.3 billion in cash, according to a press release.

Valeant stated that the company intends to use the proceeds from the sale to permanently repay term loan debt under its Senior Credit Facility. The company expects the transaction to close in the first quarter of 2017.

The CeraVe brand includes cleansers, moisturizers, sunscreens, healing ointments and baby products. The AcneFree brand includes over-the-counter cleansers and acne treatments. The AMBI brand was designed for multicultural consumers and includes facial creams, cleansers and moisturizers.

“The success of these products, and today's transaction, is a testament to the Valeant teams who have impressively grown these brands over the past several years,” Joseph C. Papa, Valeant CEO, said in the release. “We believe these products will benefit even further from the resources and capabilities of a global beauty company like L'Oréal, which is well equipped to build on the success of these brands and expand into new global markets. Our remaining consumer products business is well positioned for continued advancement within Valeant's portfolio.”

Reference: www.valeant.com