- Johnson & Johnson to purchase company for $3.3 billion in cash
- Christopher credited with $1.9 billion fortune from the deal
Todd Christopher, the founder and chief executive officer of hair-care company Vogue International LLC, became a billionaire Thursday after Johnson & Johnson announced it would acquire the closely held business for about $3.3 billion in cash.
Christopher is selling a 51 percent stake in the Clearwater, Florida-based company and has a net worth of $1.9 billion, according to the Bloomberg Billionaires Index. Private equity firm Carlyle Group will sell the other 49 percent.
The net worth calculation includes after-tax proceeds from a 2014 recapitalization that included Carlyle paying $391 million for its stake and a $400 million dividend to Christopher funded by debt. A “small portion” of the proceeds from the sale to J&J will be used to pay down company debt, according to a person with knowledge of the deal, who asked not to be identified because the information is private.
Vogue was founded by Christopher in 1987 and had revenue of $319 million for the 12 months ended March 31, 2016, according to a May 2016 Moody’s report, which also highlighted expanded distribution as a support for sales growth. The acquisition is expected to close during the third quarter of 2016 and will add OGX shampoos, conditioners and styling products, as well as the FX line of styling products and the Proganix and Maui Moisture brands, Johnson & Johnson said in a statement Thursday.
Christopher Ullman, a spokesman for Carlyle, confirmed the ownership stakes and didn’t provide further comment. Vogue International didn’t immediately respond to requests for comment.
The purchase will make J&J the fourth-largest company in the U.S. hair-care market, up from the eighth-place spot it currently holds, said Mark Boston, a company spokesman. He declined to comment on revenue for that business, revenue at Vogue or the ownership split for the company.