Updated from 7:01 a.m. with comments from Jim Cramer.

L'Oreal (LRLCY)  shares traded higher in Paris Tuesday after the luxury group bought three skincare lines from Valeant Pharmaceuticals (VRX) for $1.3 billion in a bid to expand its skincare portfolio.

The Paris-based beauty and hair care product manufacturer entered an agreement to buy the skincare brands CeraVe, Acne Free and Ambi from Valeant.

The purchases will become part of L'Oreal's Active Cosmetics Division, which includes brands such as La Roche-Posay, Vichy and SkinCeuticals that are endorsed by health professionals -- dermatologists, pediatricians and other physicians.

CeraVe is one of the fastest-growing skincare brands in the U.S., L'Oreal said, with average growth exceeding 20% over the past two years. It has a range of skincare products including cleansers, moisturizers and healing ointments that are sold in drug stores, mass and beauty retailers, and online outlets.

Acne Free offers over-the-counter acne treatments and cleansers and Ambi distributes skincare products formulated for the needs of multicultural consumers. Both brands are distributed in drug stores, mass retailers and select online outlets.

L'Oreal stock was 0.9% lower at €169.85 in afternoon trading in Europe. Shares have gained nearly 14% over the past 52 weeks.

Like-for-like sales in the Active cosmetics division were up 6.3% in the third quarter, the company's most recent results.

"These three brands, built on strong relationships with health professionals and widely distributed, will nearly double the revenue of our Active Cosmetics Division in the U.S. and will help us satisfy the growing demand for active skincare at accessible prices," L'Oreal U.S. CEO Frederic Roze said in a statement.

Under pressure, Valeant today also announced it will sell its Dendreon cancer business to China's Sanpower for $819.9 million. Valeant bought the company for $300 million in 2015.

The Laval, Quebec-based Valeant is in the midst of a turnaround strategy, shedding non-core assets to repay debt. Valeant had a tumultuous year in which its pricing strategy and ties to a specialty pharmacy led to wider political and regulatory scrutiny.

The company is looking to offload $8 billion worth of non-core assets.

That is a "positive first step," TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment Tuesday. Valeant has some $30 billion in debt, so as the company reduces that debt load, the stock becomes more investible, he said.

This is genuinely positive news and is something the company simply had to do, Cramer commented. Its debt is high, but growth remains a concern too, he said. Perhaps product price increases and new products in Valeant's pipeline will bolster growth, Cramer suggested.

Valeant shares gained 9% on Monday, but have lost more than 81% of their value in the past 52 weeks.