Headquartered in Arizona, the brand’s leadership team will continue to run the business following the acquisition and will be integrated under the leadership of the President of the Active Cosmetics Division within L’Oréal USA.
This acquisition was completed on 14 October 2022 and has been fully consolidated since that date.
The cost of this new acquisition represented €857.7 million. The total amount of goodwill and other intangible assets resulting from its acquisition amounted to €833.1 million.
In 2022, this acquisition represented €105.9 million in full-year net sales and €18.7 million in full-year operating profit.
On 1 February 2021, L’Oréal finalised the acquisition of Takami Co. This company develops and markets under licence products from the Takami skincare brand; owned by Dr. Hiroshi Takami, the founder of the two eponymous dermatology clinics in Tokyo. Mainly available in Japan and in some Asian countries, notably in China.
At the same time, L’Oréal also renewed the brand licensing agreement with Dr. Takami for a very long period and signed a collaboration agreement with the Takami clinics. Takami will be integrated into the L’Oréal Luxe Division.
In 2021, the acquisition of Takami represented €54.4 million in full-year net sales and -€7.7 million in full-year operating profit.
On 8 December 2021, L’Oréal signed an agreement to acquireYouth to the People, a skincare company based in California inspired by superfood.
Youth to the People develops and markets high-performance skincare products known for innovative formulas that combine premium vegan blends of superfood extracts and science.
Available in the US, Canada, Australia and in select European countries where it enjoys a very strong appeal, the brand is marketed through an omnichannel distribution – mix of D2C e-commerce and selective distribution.
The brand will be integrated into the L’Oréal Luxe Division. In 2021, Youth to the People is expected to record over $50 million of sales. This acquisition was completed on 29 December 2021 and has been fully consolidated since that date.
The cost of these acquisitions represented €524.3 million. The total amount of goodwill and other intangible assets resulting from their acquisitions amounted to €507,7 million (of which €336.7 million of intangible assets related to Youth to the People).
On 31 March 2021, L’Oréal finalised the sale of the Cosmeurop production site, located in Strasbourg, France to the Superga group.
For 2023, these changes mainly related to Aēsop acquisition.
For 2022, these changes related to Skinbetter Science acquisition.
For 2021, these changes mainly related to the Takami and Youth to the People acquisitions.
On 7 December 2021, the L’Oréal Board of Directors approved a strategic transaction consisting of the repurchase by L’Oréal, as part of its share buyback programme, of 22.26 million of its own shares – representing 4% of its capital – from Nestlé. The total price paid to Nestlé was €8.904 billion.
All shares redeemed by L’Oréal have been bought back for the express purpose of cancelling them. The transaction had a marginally accretive impact on the diluted net earnings per share in 2021, given that the shares were repurchased at the end of 2021, but had a full-year accretive impact of at least 4% for the 2022 financial year.
This transaction led the Group to take out a bridging loan of €1.9 billion and issue commercial paper for €2.3 billion, with the balance financed by the cash available at 31 December 2021. These loans were fully repaid in 2022.
