PG Makes Tuck-In Acquisition
The other day, Proctor & Gamble (PG) announced the acquisition of HDS Cosmetics Lab from private equity. This company makes the DDF skin care creams. My wife loves these products, and I have to say that I also use it from time to time as well.
Maybe I've been in LA for too long, but it is shocking how much all of these facial creams cost, and that consumers don't bat an eyelash when buying them.
While this acquisition is small, I think it is a growing area and PG should do well there. This looks like a smart acquisition that will help the company start to build some scale in this area.
long PG
posted by J. Kahn @ 7:25 AM
1 comments
1 Comments:
It is counterintuitive to consider scale in a boutique product. In order for this acquisition to be the slightest bit material, PG would have to increase the scale, widen the market, and risk losing the brands' cachet. Perhaps they aren't buying it for the brands but for the formulas. Maybe we will see them roll these products out as a super-premium add-on to an existing mass-market line; Olay, perhaps.
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