April 9, 2007 -- Johnson & Johnson paid $300 million to buy Dabao Cosmetics Co., the largest cosmetics company in China. The purchase price represents a P/E multiple of 57. In 2006, Dabao produced $5.3 million in profit on revenue of $86.7 million. It has net assets of $59 million. J&J is also in the cosmetics business, as it produces the Neutrogena line of cosmetics. Dubao, a state-owned company, put itself up for sale earlier this year. It has over 3,000 outlets in China, many of them in second-tier cities. The acquisition will facilitate J&J’s foray into the Chinese market. More details...
