Johnson & Johnson (NYSE: JNJ) said 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 is a privately held company whose focus is on increasing its presence in drug stores. Rather than spending on consumer advertising, Vogue is spending more on buying shelf space.
Vogue‘s products are sold in the United States and in 38 other countries, a popularity that can be explained, to some extent by its colorful packaging which makes them stand out in drugstore aisles.
The transaction, slated to close in the third quarter, is not expected to have an impact on the company’s 2016 sales or earning forecasts.
Unilever NV (NYSE: UL), Henkel & Co KgaA AG, L’Oréal SA and other companies had submitted first-round bids in an auction for Vogue, people familiar with the matter told Reuters in May.
Vogue will “complement our consumer portfolio, while also presenting attractive hair care category growth opportunities for Johnson & Johnson,” said Jorge Mesquita, world-wide chairman of J&J’s consumer business.