MC Lvmh Moet Hennessy Louis Vuitton SE

By Nishant Mohan and Jaewon Kang 

Johnson & Johnson's consumer-health arm reached a deal to buy children's cough-syrup maker Zarbee's Naturals, a move that could help the company better reach health-conscious millennial parents and bolster sales from the unit.

The New Jersey-based medical-products giant and private-equity firm L Catterton, the majority owner of Zarbee's, didn't disclose the price of the deal Monday.

Natural products are a new addition to J&J's U.S. market, said Katie Devine, global president for over-the-counter products with J&J's consumer business.

"We recognize that in health and wellness, natural products are growing at twice the rate of traditional OTC medicine in retail sales," Ms. Devine said. "Millennial parents, even more so than previous generations, are increasingly interested in trying natural solutions first."

Sales of J&J's consumer brands have seen paltry growth, particularly in the U.S., with over-the-counter consumer-product sales growing 1.1% during the first six months of 2018 compared with a year earlier. The company cited Nielsen data showing that overall sales of U.S. natural products grew 7.2% in 2017 compared with traditional over-the-counter drugs, which grew 3.4%.

Zarbee's, founded in 2008 by pediatrician Zak Zarbock, markets its health-care products as healthier alternatives to traditional over-the-counter medicines since they don't contain alcohol, gluten or dyes. J&J's portfolio of consumer brands includes Tylenol, Motrin, Listerine and Band-Aid.

Zarbee's in April launched a line of children's gummy multivitamins, a product J&J doesn't currently sell.

Ms. Devine said that outside the U.S., J&J markets natural products such as Dr. Mom herbal cough syrup and lozenges.

L Catterton is expecting to garner about a 10-times return on its exit of Zarbee's, said a person familiar with the situation. The private-equity firm invested in the health-products maker in 2011 through its growth fund.

Consumer-focused L Catterton was formed in 2016 by private-equity firm Catterton; Groupe Arnault, the family holding company of Bernard Arnault; and LVMH Moët Hennessy Louis Vuitton SE. Among its portfolio companies are restaurant chain Chopt Creative Salad Co. and cosmetic brand Cover FX Skincare Inc.

J&J shares rose 0.3% to $131.95 in Monday trading. Shares are down 5.6% so far this year.

Write to Nishant Mohan at nishant.mohan@wsj.com and Jaewon Kang at jaewon.kang@wsj.com

(END) Dow Jones Newswires

July 30, 2018 13:05 ET (17:05 GMT)

Grafico Azioni Lvmh Moet Hennessy Louis... (EU:MC)
Storico
Da Mar 2024 a Apr 2024

Grafico Azioni Lvmh Moet Hennessy Louis... (EU:MC)
Storico
Da Apr 2023 a Apr 2024