L’Oréal acquires Mumbai-based Cheryl's Cosmeceuticals

French cosmetics & beauty giant L'Oréal yesterday acquired Mumbai-based Cheryl's Cosmeceuticals, its first acquisition in India.

The move comes two months after L'Oréal agreed to buy Chinese skincare company Magic Holdings International for $840 million, as the Paris-based company attempts to strengthen its presence in emerging markets. (See: L'Oreal to buy Chinese skincare company Magic Holdings for $840 mn)

L'Oréal did not disclose the financial terms of the Cheryl's Cosmeceuticals deal, but industry analysts opine that the world's largest cosmetics and beauty company may have paid between Rs30 crore- Rs40 crore.

''This is an attractive opportunity for us, as it broadens our offering to include skincare products and services. We already had expertise in haircare. We now complete our product offering with the new acquisition,'' said, Jean-Christophe Letellier, managing director, L'Oréal India.

Founded in 1986 by Oscar & Cheryl Pereira, Cheryl's Cosmeceuticals is a beauty and haircare product manufacturing company having more than 200 beauty & haircare products available in 10,000 salons in India.

The company has annual turnover of Rs 20 crore.

Oscar Pereira, director of Cheryl's Cosmeceuticals, said, "It has been a great adventure to bring to market a truly unique brand that has captured the hearts and minds of many thousands of salons."

''This is an attractive opportunity for L'Oréal in India as it broadens the product offering of our Professional Products Division in this country to also include skincare products and services. It will further enhance our leadership position in the very dynamic professional products market where we are present with our brands - L'Oréal Professionnel, Matrix, and Kerastase,'' said, Letellier.

L'Oreal, which has been present in the country since 1994 through its wholly-owned subsidiary L'Oreal India, generates around  20 per cent of its Rs1,500 crore turnover  in India through its three brands - L'Oréal Professionnel, Matrix, and Kerastase.