Drugstore.com to acquire Salu for $36 million

Bellevue, Wash. Online health and beauty retailer Drugstore.com announced late Monday it will purchase Salu, the operator of SkinStore.com, for $36 million.

According to Drugstore.com, the deal will make it one of the largest online beauty retailers. Salu's SkinStore.com Web site sells skin care and beauty products, and the company also runs the spalook.com online store and distributes products in Australia.

The purchase will be funded with $18 million in cash and $18 million in stock, and the deal is expected to close during first quarter 2010.