The ‘Iluminage Beauty’ venture will leverage Unilever's global experience in the development and marketing of consumer beauty products and the Israel-based manufacturer's expertise in professional aesthetic device technology.
Under the terms of the agreement, the venture capital and private equity arm of Unilever will invest $25 (€18) million and will also sell and transfer its luxury beauty subsidiary 'Iluminage' whilst Syneron will sell its beauty subsidiary and related home-use businesses.
Unilever Ventures will hold 51% and Syneron will retain the remaining 49%.
On its' completion, Syneron Medical CEO, Shimon Eckhouse said; "We believe Iluminage Beauty is well positioned to gain share in the home beauty device market. The joint venture structure will allow us to focus on driving growth in our professional aesthetic business while also maximizing the value of our investment in our home-use business."
Both parties expect the transaction to close before the end of the year, subject to customary closing conditions and regulatory approvals.
Unilever consistently investing in this segment
In early November we reported the personal care giant had ventured into the skin care device segment by investing a stake in French cosmetic brand ioma, whose expertise lies in analysing the condition of the skin and developing appropriate treatment devices to cater to the result.
That venture saw Unilever become a shareholder in the hope to accelerate its' growth internationally and benefit from new R&D prospects whilst also allowing the French brand to maintain complete autonomy regarding its business and development operations.
The market for skin care devices has become a great opportunity for growth for cosmetic brands of late. According to research firm Kline, double-digit growth in the market across the globe is only the beginning for a segment ready to take off.
"It's a large and growing phenomenon, with beauty devices offering multiple benefits a notable driving force,” analysts say.
In Europe, the market is being shaped by regional brands, such as the leader in permanent hair removal, Lumea, by the Dutch-based Phillips, and the anti-ageing device SQOOM by Germany's Schick Medical.