Industry in brief | Pierre Fabre, Orkla, BioGaia

Industry in brief | Pierre Fabre, Orkla, BioGaia

6 November 2020 - Deborah Wilkes

Pierre Fabre has divested two skincare brands, Orkla is selling its skincare business in Poland, and private-equity firm EQT has invested in BioGaia.

Pierre Fabre divests two brands

French pharmaceutical and dermocosmetics company Pierre Fabre has divested two skincare brands – Elancyl and Galenic – to separate buyers for undisclosed sums.

The anti-cellulite specialist Elancyl has been acquired by Spanish dermatology company Cantabria Labs. Elancyl recorded sales of EUR9.8 million (USD11.6 million) in 2019, and is sold in 20 countries including France, Greece, Poland, Portugal and Spain.

Eric Ducournau, Pierre Fabre’s chief executive officer, said the divestment was “perfectly consistent with the company’s strategy of focusing its skincare investments on brands relying on dermatologist recommendation and targeting pathologic skins which is not the case of Elancyl today”.

Meanwhile, the premium skincare brand Galenic has gone to Chinese beauty company Yatsen. Pierre Fabre owns a minority stake of 10% in the affiliate created by Yatsen to handle Galenic assets in Europe.

Yatsen intends to launch Galenic in China and other Asian markets.

Orkla divesting skincare business in Poland

Norway’s Orkla is divesting its skincare business in Poland – including the Soraya and Dermika brands – to local company Bielenda Kosmetyki Naturalne for an undisclosed sum.

Orkla said the business had generated sales of PLN56 million (USD14.8 million) in 2019.

The deal, which is subject to approval by the Polish competition authorities, should be completed around the end of 2020.

Founded in 1990, Bielenda is a family-owned supplier of branded beauty and skincare products. It has teamed up with the Polish private-equity fund Innova Capital for the deal.

Norwegian conglomerate Orkla generated sales of NOK43.6 billion (USD4.80 billion) in 2019 from a portfolio that includes cleaning products, foods, food ingredients, healthcare products and personal care products.

EQT invests in BioGaia

Private-equity firm EQT has taken an 8% stake in Swedish probiotics specialist BioGaia for SEK650 million (USD75 million) by participating in a directed issue.

EQT said it would support BioGaia by providing access to its “healthcare expertise, broad advisory network and in-house digital and sustainability teams”.

In addition to EQT, the US-based agricultural products company Cargill invested SEK240 million in BioGaia.

BioGaia said it had raised SEK1.1 billion in total which would allow it to “accelerate its growth agenda” and “act swiftly on potential future acquisitions”.

BioGaia recently announced that its sales and earnings in the third and fourth quarter of 2020 would be “negatively affected” by the COVID-19 pandemic.

The company said sales in the third quarter of 2020 had decreased by 21% to SEK132 million and operating profit had dropped by 45% to SEK27.0 million (click here to read the News story).

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