French beauty products company L’Oréal SA (EPA: OR) has acquired Mumbai-based Cheryl’s Cosmeceuticals, a professional skincare products company, as a means of boosting distribution across India.
The acquisition comes on the heels of L’Oréal’s announcing plans to invest in India as a means of growing its supply chain and improve production facilities and spend roughly of Rs.970 crore ($156.4 million) on research and M&A. Terms of the deal, which is L’Oreal’s first in India, were not disclosed.
“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,” said Jean-Christophe Letellier, managing director, L’Oréal India.
L’Oréal’s range of products include L’Oréal Professionnel, Matrix and Kerastase. Each of the company’s brands are sold in salons and drugstores. In its own right, Cheryl’s Cosmeceuticals boasts a distribution network of more than 10,000 salons in India and a turnover of roughly Rs.20 crore ($3.2 million).
For more on the skin care industry, see "Skin Deep: Cosmetics Go Medical."
For more on deals in emerging markets, see "10 Emerging Markets to Watch."