L'Oreal expands dermatological skincare portfolio with Medik8 deal
L'Oreal will acquire British skincare brand Medik8, Britain-based private equity firm Inflexion said on Monday, as the French cosmetics giant boosts its offering in the fast-growing dermatological skincare market.
Neither party disclosed the size of the deal. Medik8 produces vitamin A-based anti-aging creams and serums.
"The partnership with L'Oreal will allow Medik8 to deepen its presence in existing markets and expand globally. As part of the transaction, Inflexion will retain a minority shareholding in Medik8," the private equity firm said in a statement.
L'Oreal's dermatological beauty division, which includes major brands like CeraVe, La Roche-Posay and SkinCeuticals, has remained its fastest-growing unit in recent years. The division generated 7 billion euros ($7.99 billion) in revenue last year, marking a growth of nearly 10% compared to the previous year.
The business also delivers the highest profit margin among L'Oreal's four divisions. Consumer interest in science-backed products has driven the division's growth, though rising competition has recently slowed that momentum.
L'Oreal executives said this year they are pursuing acquisitions to revive slowing growth. The company acquired Korean skincare brand Dr.G in December and also bought a minority stake in Oman-based perfume house Amouage last year.
($1 = 0.8757 euros)
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