The deal taps in to North Castle's development of a portfolio of skin care products that focus on healthy living and aging trends - something that is helping to drive significant growth in the niche skin care categories, particularly for anti-aging products.
North Castle, which is a private equity firm focused on consumer businesses, said that the transaction was the third it had completed so far in 2007 and the fifth in the space of the last 12 months.
It bought up the New York-based business in 2004 and has invested in the brand to develop its portfolio of Doctor's Dermatologic Formula (DDF) brands, focusing on specific skin conditions.
Currently DDF brands are sold in specialty retail and department stores as well as selected spas throughout the United States and several other key markets.
Although details of the transaction were not revealed, North Castle did say that New York City-based Easton Capital Group, which had originally invested in HDS Cosmetics Lab in 2001, had also sold its interest to P&G in the course of the transaction.
"The addition of DDF to our existing portfolio provides us with the ideal opportunity to reach new consumers in new channels," said Paolo DeCesare, president, P&G Global Skincare. "This move also reflects P&G's corporate strategy to focus on skin care as a key growth category."
DDF was first created in 1991 and was positioned as a pioneering skin care line. Since its inception it has grown a loyal consumer following that has helped to give it a strong position amongst the premium and niche skin care category.
In a statement P&G said that through further investment and by tapping into its vast research and development capabilities, it is aiming "to infuse the line with a steady stream of innovation, add marketing expertise, and leverage its global reach and go-to-market capability to drive future expansion".
"We created DDF to bring forth the latest technologies, based on medical practices and protocols," said Dr. Howard Sobel, a leading New York dermatologist and founder of DDF. "I'm confident that with P&G's know-how and scale behind it, DDF can grow to reach even more women and men who are looking for professional solutions."
Further to the sale of the HDS Cosmetics Lab, North Castle has also completed the sale of its Avalon Organics and Alba Botanica natural and organic personal care lines, to the Hain Celestial group, as well as making other significant transactions in the health drink, healthcare and fitness categories.