L’Oréal paves the way to acquire two brands from Shiseido

By Simon Pitman

- Last updated on GMT

Related tags: Skin care products, Brand, The body shop, L'oréal

L’Oréal paves the way to acquire two brands from Shiseido
L’Oréal has confirmed a draft agreement that will see it acquire the Decléor and Carita professional skin care brands from Japanese cosmetics giant Shiseido.

The agreement gives L’Oréal exclusive negotiation rights to acquire the brands, and although terms and conditions cannot be revealed at this stage of the deal, it will be brokered over the course of the next few weeks.

During this time both companies will be involved in a comprehensive consultation period between employee representatives, after which the deal will then be subject to approval by the relevant regulatory authorities. 

L’Oréal targets the professional skin care market

This project is a wonderful opportunity for our Division to become a major player in this strategic professional beauty market, complementary to hair salon,” said ​An Verhulst-Santos, president Professional Products Division L’Oréal. 

“Decléor and Carita are two beautiful, prominent beauty institute brands, particularly well-established in Western Europe. Their growth perspectives, especially internationally, are very promising.”​ 

The Decléor and Carita brands had a turnover of approximately €100m in 2012. The products are sold in professional hair care salons, as well as salons and beauty institutes worldwide. 

Both brands were established in France, and have been developed as global skin care products lines targeting the premium and luxury ends of the market. 

Two heritage brands with French cachet

Carita was established in 1945 and offers technologically advanced skin care products that target the anti-ageing category, while it also has a line of hair care products that includes shampoos, conditioners and styling products.

It is available in markets such as Japan, Italy, the UK, the US, Russia and Spain. The Decléor brand was established in 1974 and offers a wide range of aromatherapy and phytotherapy natural-based skin care products that are sold in the same markets as the Carita brand. 

Shiseido acquired the Carita brand in 1986 and the Decléor brand in 2000. Since then the company has invested in the brands to help them expand globally, ultimately reaching the number two position in the global professional spa and beauty institute market.

A busy week for the L’Oréal M&A team

Earlier this week L’Oréal announced that it had bought the Brazil beauty retail chain Emporio Body Store, making the acquisition through its wholly-owned beauty retail division, The Body Shop.

The deal will see L’Oréal take a 51% majority stake in the business, with a view to increasing that stake to 80% by 2019 if the company reaches its objectives. It also gives The Body Shop brand an important first footing in the market.

Although the exact terms of the deal were not revealed, L’Oreal has said that the deal is expected to be closed by the end of the year, subject to the approval of the Brazilian Anti-Trust Authority.

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