M&A

Johnson & Johnson Buys Vogue International

J&J buys shampoo and hair styling products firm for $3.3 billion.
Katie Kuehner-HebertJune 2, 2016

In a slow market for transformative deals, consumer products firm Johnson & Johnson announced a bite-sized transaction on Thursday.

Johnson & Johnson announced that it would buy Vogue International, a privately-held manufacturer of hair care and other personal care products, for about $3.3 billion in cash.

“Our acquisition of Vogue International’s full line of leading advanced hair care products sold in the United States and in 38 countries will strengthen our global presence in this important category,” Jorge Mesquita, worldwide chairman of the firm’s consumer unit, said in a press release.

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The deal, expected to close during the third quarter, is not expected to impact the 2016 sales or earnings guidance ranges that Johnson & Johnson announced on April 19 in its earnings release.

At that time, the company said that it had updated its sales guidance for full-year 2016 to $71.2 billion to $71.9 billion, reflecting current foreign currency exchange rates. Additionally, Johnson & Johnson increased its adjusted earnings guidance for full-year 2016 to $6.53 to $6.68 per share.

“The deal for Vogue will hardly dent J&J’s finances,” USA Today wrote.

Still, the transaction will add popular brands OGX shampoos and FX hair styling products to Johnson & Johnson’s consumer product lineup.

“[Vogue] has focused on increasing its presence in drug stores and is spending more on buying shelf space than on consumer advertising,” Fortune wrote.

Buyout firm Carlyle Group LP acquired a 49% stake in Vogue in 2014. Only a year later, the privately held company paid a dividend to Carlyle. The terms of the minority stake purchase were not disclosed but when Vogue was up for sale in 2013 it was reportedly valued at about $800 million.