J&J on Mission to Dominate Hair Care
American health-care and consumer giant Johnson & Johnson is on a mission to expand its position in the hair care market by buying popular shampoo maker Vogue International for $3.3 billion.
The acquisition of the New Jersey-based company includes products such as OGX shampoos and conditioners, FX hair styling products, and the Proganix and Maui Moisture brands.
Vogue’s hair products are popular among consumers for the colorful packaging. The products are sold in the U.S. and 38 other countries worldwide.
Buying Shelf Space Rather Than Consumer Advertising
According to Jorge Mesquita, Johnson & Johnson’s world-wide chairman, the Vogue deal “will strengthen our global presence in this important category.”
Johnson and Johnson set its eyes on increasing its presence in drug stores and is spending more on buying shelf space than on consumer advertising. Thus, acquiring Vogue International is one step closer to fulfilling its goal to expand its position in the hair care market.
J&J is buying Vogue from the company’s founder, Todd Christopher, and private equity firm The Carlyle Group.
The transaction is set to close during the third quarter of this year.
Johnson & Johnson Sales in 2015
A Bloomberg report says consumer products such as body and hair care made up about 19 percent of J&J’s total sales in 2015. Pharmaceuticals sales made up about 45 percent of the company’s revenue, while the rest came from medical devices and diagnostics.
About Johnson & Johnson
Founded in 1886, Johnson & Johnson is an American multinational medical devices, pharmaceutical and consumer packaged goods manufacturer.
Johnson & Johnson’s brands include popular household names of medications and first aid supplies. Among its prominent consumer products include Band-Aid Brand line of bandages, Tylenol medications, Johnson’s baby products, Neutrogena skin and beauty products, Clean & Clear facial wash and Acuvue contact lenses.
Johnson & Johnson is headquartered in New Brunswick, New Jersey and Johnson & Johnson Consumer Inc., is based in Skillman, N.J.
Hair dying using Vogue’s products.