Drugstore.com to absorb SkinStore.com
This article was originally published in The Rose Sheet
Executive Summary
Bellevue, Wash.-based Drugstore.com Inc. will acquire Salu, Inc., owner of online personal-care retailer SkinStore.com, for $36 mil., moving "one step closer toward achieving our goal of becoming the leading online retailer of beauty and spa products," firm says. According to Dec. 28 release, the half-cash, half-stock deal will close in the first quarter of 2010. SkinStore.com - which carries clinical skin-care items, sun protection products and skin health supplements - will fill out retailer's offering, which includes mass beauty products sold on Drugstore.com and the higher-end cosmetics in its Beauty.com portal, acquired in 2000 (1"The Rose Sheet" Jan. 17, 2000). Salu, expected to generate $40 million in revenue and $500,000 in net income for 2009, will continue to operate in Sacramento, Calif