As Shiseido refocuses on Asia, L’Oréal snaps up brands

By Lucy Whitehouse

- Last updated on GMT

As Shiseido refocuses on Asia, L’Oréal snaps up brands

Related tags Cosmetics

In a mutually beneficial agreement, Japanese cosmetics company Shiseido has announced the sale of two of its luxury beauty brands, Carita and Decléor, to French beauty brand L’Oréal.

L’Oréal will buy the two personal care brands, whose combined sales in 2012 totaled approximately €100 million, for €227.5 million.

Shiseido voiced a renewed focus on the Asia region based on "selection and concentration, with the aim of making its strong fields stronger and its large fields larger​,” the company stated.

Shiseido’s adjusted focus

The sale of Carlita and Decléor, which see the majority of their sales in Europe, participates in the company’s aim to streamline its focus onto hair care products in Asia.

For the fiscal year 2014 and beyond, we will further accelerate growth to become a global player representing Asia with its origins in Japan,” ​the company stated.

In terms of region, the division looks forward to accelerating business deployment in Asia, where the professional hair care market is growing rapidly.”

Mutually beneficial

The deal looks set to benefit both parties, with L’Oréal voicing their hope for the acquisition to further strengthen their European portfolio.

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. 

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. 

Deal details

The announcement follows months of negotiation, with L’Oréal having originally put forward its interest in the purchase in September last year.

The French cosmetics company will receive 100% of shares, along with related assets, including inventories and fixed assets (such as cosmetics counters in retail stores), to the value of approximately €2 million.

The deal “expected to close in the near future, subject to regulatory approvals​,” Shiseido notes. 

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