L’Oréal seals acquisition of Brazilian hair dye specialist Niely
Niely is the largest independent hair coloration and hair care companies in Brazil, a market where expenditure on hair care has rocketed during the course of the last ten years.
According to L’Oreal executives, the acquisition will complement the existing portfolio of more than 25 brands that it already has in the country.
Building on strong position in Brazil
Currently the company employs around 2,700 people in Brazil and has revenues in excess of Brazilian Real 2.2 billion (US$1bn), derived from two plants in Rio and Sao Paulo that produce in excess of 420 million units annually.
In 2014 Niely had a net revenue of Brazilian Reals 406 million (US$127m), revenue that was mainly derived from its two core brands, Niely Gold and Cor & Ton.
The Cor & Ton product portfolio is focused on a wide range of hair coloration products, whereas the Niely Gold portfolio is dedicated to a range of shampoos and general hair care products.
The entire product range is leveled at an ‘accessible’ price point, which has made it popular with the burgeoning middle class that has grown on the back of the country’s increased economic prosperity over the past decade.
Building on multi-cultural brands
The acquisition of Niely was first announced in September 2015, and was subsequently approved by the notoriously tough Brazilian authorities last month.
The addition of Niely to the company's portfolio in one of the most ethnically diverse countries in the world adds to the October acquisition by L’Oréal USA of Carol’s Daughter, an American multi-cultural beauty brand with a pioneering heritage in the natural beauty movement.