L'Oréal signs agreement to acquire Niely Cosmeticos Group in Brazil
L'Oréal announced today that it has signed an agreement to acquire NIELY COSMETICOS in Brazil. Founded in 1981 by Daniel Fonseca de Jesus, Niely Cosmeticos is the largest independent hair coloration and hair care company in Brazil, one of the world's largest hair color and hair care markets.
With a net revenue of 405 million Brazilian Reals (140 million euros) in 2013, the Niely Cosmeticos group has two main brands: Cor & Ton for hair coloration and Niely Gold for shampoos and care. Sold at accessible prices and enjoying a large penetration among the country's middle class, Niely Cosmeticos products are widely distributed throughout retailers and wholesalers, supermarkets, pharmacies and perfumery chains. Furthermore, Niely Cosmeticos has industrial and logistical facilities in Nova Iguaçu, in the State of Rio.
Daniel Fonseca de Jesus, founder of Niely Group said, "We are delighted to join L'Oréal. We are convinced this operation will allow Cor & Ton and Niely Gold consumers to benefit from all of L'Oréal's marketing and Research & Innovation expertise. It is also a great opportunity for our people to pursue Niely's adventure within the world's leading beauty company."
Daniel Fonseca de Jesus will be joining L'Oréal Brazil's Strategic Committee as Vice-President.
"The acquisition of Niely Cosmeticos is a strategic move for L'Oréal in Latin America and Brazil, one of the biggest and fastest growing hair color and hair care markets in the world where consumers have a long tradition of beauty and demanding expectations" said Frédéric Rozé, Executive Vice-President of L'Oréal in charge of the Americas.
Didier Tisserand, President of L'Oréal Brazil added: "we are thrilled to welcome Niely to the L'Oréal group. Niely benefits from an excellent position and high penetration of the growing Brazilian middle class and as such will positively complement the products offered by our Consumer Products Division in Brazil."
The closing is subject to the usual regulatory approvals.
About L'Oréal
L'Oréal has devoted itself to beauty for over 105 years. With its unique portfolio of 28 international, diverse and complementary brands, the Group generated sales amounting to 23 billion euros in 2013 and employs 77,500 people worldwide. As the world's leading beauty company, L'Oréal is present across all distribution networks: mass market, department stores, pharmacies and drugstores, hair styling salons, travel retail and branded retail.
Research and innovation, and a dedicated research team of 4,000 people, are at the core of L'Oréal's strategy, working to meet beauty aspirations all over the world and attract one billion new consumers in the years to come. L'Oréal's new sustainability commitment for 2020 "Sharing beauty with all" sets out ambitious sustainable development objectives across the Group's value chain. www.loreal.com
"This news release does not constitute an offer to sell, or a solicitation of an offer to buy L'Oréal shares. If you wish to obtain more comprehensive information about L'Oréal, please refer to the public documents registered in France with the Autorité des Marchés Financiers, also available in English on our Internet site www.loreal-finance.com.
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