LONDON, UK / ACCESSWIRE / December 20, 2017 / Active-Investors issued a free report on Colgate-Palmolive Co. (NYSE: CL), which is readily accessible upon registration at www.active-investors.com/registration-sg/?symbol=CL as the Company's latest news hit the wire. On December 18, 2017, the Company declared that it has agreed to purchase two professional skin care brands PCA Skin and EltaMD in two separate transactions. Sign up now for our free research reports at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Colgate-Palmolive most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:

www.active-investors.com/registration-sg/?symbol=CL

This move is part of Colgate's strategy to focus on its higher-margin oral care, personal care, and pet nutrition businesses. These acquisitions would help the Company enter the highly attractive professional skin care category while complementing its existing global personal care businesses.

About the Acquired Brands

  • The acquired brands PCA Skin and EltaMD are two of the fastest-growing brands in the professional skin care category. PCA Skin is a leader in medical-grade in-office and take-home skin care products while EltaMD is a leading physician-dispensed sun care brand.

  • Both these brands are similar in size and are mainly sold through professional skin care channels as well as through the online medium. PCA Skin enjoys a good reputation and gets significant support from dermatologists, plastic surgeons, and aestheticians. Whereas EltaMD has a unique positioning as a broad-spectrum, everyday use, physician-dispensed sunscreen.

  • The combined net sales for PCA Skin and EltaMD for 2017 are estimated to be around $100 million.

  • At present, these brands are widely distributed in the US, China, and certain other international markets.

Acquisitions to Strengthen Colgate's Presence in the Professional Skin Care Category

Colgate believes that PCA Skin and EltaMD would make an excellent combination for its entry into the professional skin care category. These brands have complementary product portfolios and sales forces. Both have robust professional support and a similar distribution strategy. Therefore, this combination would work well for advancing Colgate's presence in the premium global skin care category.

On the other hand, PCA Skin and EltaMD would also benefit from Colgate's long-standing legacy of working with professional experts to provide recommendations that benefit their patients.

Transaction Details

  • Colgate has announced that it would continue to operate PCA skin and EltaMD as independent units after closing. But the companies have made no disclosure about the financial terms of the deal yet.

  • As of now, the acquisitions are subject to customary closing conditions, including the US antitrust clearance. Post which, both transactions are expected to close in the first quarter of 2018.

  • Colgate does not expect these transactions to have any impact on earnings in 2018.

  • Wachtell, Lipton, Rosen & Katz acted as the legal advisor to Colgate-Palmolive on both transactions while Wells Fargo Securities LLC acted as the exclusive financial advisor to Colgate for the acquisition of EltaMD.

Stock Performance Snapshot

December 19, 2017 - At Tuesday's closing bell, Colgate-Palmolive's stock advanced 1.16%, ending the trading session at $74.85.

Volume traded for the day: 4.19 million shares, which was above the 3-month average volume of 3.48 million shares.

Stock performance in the last month ? up 4.12%; previous three-month period ? up 3.17%; past twelve-month period ? up 13.31%; and year-to-date - up 14.38%

After yesterday's close, Colgate-Palmolive's market cap was at $65.92 billion.

Price to Earnings (P/E) ratio was at 28.89.

The stock has a dividend yield of 2.14%.

The stock is part of the Consumer Goods sector, categorized under the Personal Products industry.

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