PARIS — Continuing its push into emerging markets, L’Oréal inked a deal to acquire 100 percent of Brazil’s Niely Cosméticos.
The French beauty giant described Niely as the largest independent hair-color and hair-care company in Brazil, generating net revenues in 2013 of 405 million Brazilian reals, or $188 million at average exchange.
The company’s main brands are Cor & Ton for hair color and Niely Gold for shampoos and care. Both are sold at “accessible prices and enjoy a large penetration among the country’s middle class,” L’Oréal said.
Daniel Fonseca de Jesus founded the company in 1981, and is to join L’Oréal Brazil’s strategic committee as vice president.
“The acquisition of Niely Cosméticos 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,” said Frédéric Rozé, executive vice president of L’Oréal in charge of the Americas.
Niely Cosméticos has industrial and logistics facilities based in Nova Iguaçu, part of the greater Rio de Janeiro area.
The deal is subject to regulatory approvals, L’Oréal noted.
Latin America represented 8.9 percent of L’Oréal’s revenues last year, with the zone posting a gain of 11.5 percent in the period.
Investment bank Michel Dyens & Co. advised Niely’s shareholders in the transaction, according to sources.
L’Oréal has been one of the most active beauty firms on the mergers and acquisitions front recently, demonstrating interest in brands at various stages of their life cycles.
In June, it added the makeup artistry brand NYX Cosmetics to the fold. Last April, L’Oréal completed the acquisition of Magic Holdings International Ltd., a maker of Chinese facial masks, and the purchase of Decléor and Carita from Shiseido Co. Ltd.
And last October, The Body Shop, which is owned by L’Oréal, purchased a 51 percent stake in multibrand beauty retailer Empório Body Store in Brazil, with an option to increase its ownership share to 80 percent by 2019.
Brazil has a population of about 200 million and claims the largest economy in Latin America. The beauty market there has been booming and ranks fourth in the world.