Because it's worth it: L'Oreal to buy skincare brand Medik8 in €1bn deal
L'Oreal has agreed to buy a majority stake in the UK company Medik8 as the French cosmetics group strengthens its presence in the booming skincare market.
The private equity firm Inflexion will keep a minority stake as part of the deal while the current management will stay on, L'Oreal said on Monday without disclosing financial details.
L'Oreal has been boosting its portfolio, seeking to take advantage of the interest in skincare driven by social media influencers who use and promote creams and serums on platforms like TikTok. The Financial Times reported last week that the deal was worth roughly €1bn.
L'Oreal shares fell less than 1% in early Paris trading. They have rebounded about 11% so far this year after a slowdown in the US and China weighed on the stock in 2024.
Medik8, founded in 2009 by Elliot Isaacs and based just north of London, specializes in anti-aging treatments. It will join L'Oreal's luxury division.
Inflexion bought Medik8 for an undisclosed amount in 2021. The brand's founder, Mr Isaacs, will remain on the board of Medik8, L'Oreal said.
The deal gives L'Oreal a wider offering in skincare at different prices. Medik8 products are typically more affordable than SkinCeuticals, which L'Oreal bought two decades ago and is now part of its dermatological beauty unit. Cyril Chapuy, who heads the group's luxury division, highlighted Medik8's 'accessible price point'.
The dermatological beauty unit saw the fastest growth among L'Oreal's four divisions last year. The unit also includes affordable brands like CeraVe and Vichy. The group also bought Australian cosmetics brand Aesop in 2023 to strengthen the luxury division, which is the second-largest in sales after the consumer-products unit.
Other well-known L'Oreal brands include mascara maker Maybelline New York and shampoo labels Garnier and Kérastase.
The company in April reported stronger-than-expected sales in the first part of the year, led by demand for high-end make-up and perfumes.
Bloomberg
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Examiner
3 hours ago
- Irish Examiner
Teenage girls' TikTok skincare regimes offer little to no benefit, research shows
Skincare regimes demonstrated by young influencers on TikTok offer little to no benefit, researchers have found, adding that on the contrary they raise the risk of skin irritations and lifelong allergies in children. The team behind the study say there has been a rise in young girls sharing videos of complex skincare routines with moisturisers, toners, acne treatments and anti-ageing products. In the first study of its kind, researchers analysed such videos on the platform and found the regimes are not only laborious – some girls wake up as early as 4.30am to fit in their routines – but pricey, unnecessary and potentially harmful. 'The risks associated with using these products, especially in young girls, far outweighs whatever marginal benefit you may get from using the active ingredients,' said Dr Molly Hales, the first author of the research from Northwestern University. Hales added that while social media can be a place for playfulness and self-expression, young girls do not need such regimes. 'The danger is when girls get the message that this is something that they have to do to take care of their skin and to protect their health,' she said. These products don't increase the health of your skin and they probably worsen your skin integrity over time. Instead, she said a gentle cleanser once or twice a day and the application of sunscreen is sufficient. Writing in the journal Paediatrics, Hales and colleagues report how they created two TikTok accounts, purportedly for 13-year-olds, and accumulated a sample of 100 skincare routines videos filmed by young people. The team found all but one of the 82 creators were girls, and their age ranged from 7-18. 'Almost all content creators had clear, light skin without visible blemishes,' the researchers write, adding the videos 'made frequent reference to aspirational beauty ideals that may be tied to whiteness'. The study reveals the skincare regimes involved six products on average, often from the same brands, with a total average cost of $168 (€147). However, some involved more than a dozen products with a total cost of more than $500 (€437). 'Get Ready With Me' videos were the most common, followed by 'Skin Care Routine' and 'After School' skincare routine videos. The team found many of the ingredients in the featured products, such as citric acid, carry a risk of skin irritation and sun sensitivity – meaning they increase the chance of sunburn and other skin damage. Yet only 26% of the 84 videos showing daytime skincare routines included a sunscreen – something that authors called 'a significant missed opportunity'. Hales added the use of products with multiple active ingredients, or layering products with the same active ingredients, increases the risk of skin irritation. The researchers found that among the 25 top-viewed videos, 76% contained at least one potential contact allergen – often fragrance. The Guardian Read More The best SPFs for your face, as tested by a beauty editor
Irish Examiner
6 hours ago
- Irish Examiner
Because it's worth it: L'Oreal to buy skincare brand Medik8 in €1bn deal
L'Oreal has agreed to buy a majority stake in the UK company Medik8 as the French cosmetics group strengthens its presence in the booming skincare market. The private equity firm Inflexion will keep a minority stake as part of the deal while the current management will stay on, L'Oreal said on Monday without disclosing financial details. L'Oreal has been boosting its portfolio, seeking to take advantage of the interest in skincare driven by social media influencers who use and promote creams and serums on platforms like TikTok. The Financial Times reported last week that the deal was worth roughly €1bn. L'Oreal shares fell less than 1% in early Paris trading. They have rebounded about 11% so far this year after a slowdown in the US and China weighed on the stock in 2024. Medik8, founded in 2009 by Elliot Isaacs and based just north of London, specializes in anti-aging treatments. It will join L'Oreal's luxury division. Inflexion bought Medik8 for an undisclosed amount in 2021. The brand's founder, Mr Isaacs, will remain on the board of Medik8, L'Oreal said. The deal gives L'Oreal a wider offering in skincare at different prices. Medik8 products are typically more affordable than SkinCeuticals, which L'Oreal bought two decades ago and is now part of its dermatological beauty unit. Cyril Chapuy, who heads the group's luxury division, highlighted Medik8's 'accessible price point'. The dermatological beauty unit saw the fastest growth among L'Oreal's four divisions last year. The unit also includes affordable brands like CeraVe and Vichy. The group also bought Australian cosmetics brand Aesop in 2023 to strengthen the luxury division, which is the second-largest in sales after the consumer-products unit. Other well-known L'Oreal brands include mascara maker Maybelline New York and shampoo labels Garnier and Kérastase. The company in April reported stronger-than-expected sales in the first part of the year, led by demand for high-end make-up and perfumes. Bloomberg
Irish Independent
9 hours ago
- Irish Independent
The Indo Daily: Rugby stars, Leaving Cert grinds, lewd jokes and a High Court case
The private grinds industry in Ireland is booming, and is estimated to be worth between €50-€60m. Investors, including well-known names like Brian O'Driscoll and Caelan Doris, have been keen to get in on the action, as the pair did when they helped fund hybrid learning platform Grinds 360 last year. But the competition in the grinds world can be just as intense as it is on the rugby pitch, and sometimes notably bitter. Take the case of respected maths teacher Rob Browne, whose high-profile transfer from the Dublin Academy of Education to Grinds 360 led to a contentious dispute that landed in the High Court where, among other things, a lewd joke made on TikTok was under scrutiny. On this episode of The Indo Daily, host Kevin Doyle is joined by Sunday Independent journalist Mark Tighe, to discuss this unusual legal battle.
