Procter & Gamble has revealed it has acquired prestige skincare brand, First Aid Beauty for an estimated $250 million. Although terms and numbers were not disclosed, FAB is said to have about $50 million in net sales.
Lilli Gordon, founder of FAB, will remain in charge as chief executive officer and will report to Markus Strobel, president of P&G’s global skin and personal care.
“When I look at where we are today, it’s almost a point of inflection for the business. We’ve been growing very healthily, but in order to sustain that growth over the next ten years really takes a different mind-set,” Gordon said.
She revealed the acquisition is expected to increase FAB’s global footprint “much faster and so much more effectively,” as well as provide access to more research and development resources.
FAB currently relies on third parties for formulas, but once acquired by P&G, it will be able to explore new means of product development.
Strobel said P&G is looking for brands that complement its portfolio in benefit spaces and segments of the market, but he also anticipates the acquisition will give P&G greater access to North America’s speciality retail channel, with FAB selling at Sephora, Ulta Beauty and QVC.
FAB is set to deliver to P&G a line of products for sensitive skin and conditions, such as redness, dryness and eczema.
