Clichy, 26th January 2004 6:00 pm – The L'Oréal group has signed an agreement to acquire the Chinese make-up and skincare brand Yue-Sai.
Founded in 1992 by Mrs Yue-Sai Kan – a well-known personality who is Chinese but was educated in the West – Yue-Sai, which has been owned by Coty since 1996, achieved sales approaching € 38 million in 2003.
From the outset, Yue-Sai's product lines have been created exclusively for Chinese women. Yue-Sai is a major brand with a strong market position, and is sold in 800 department stores located in 240 of China’s largest cities.
"After Mininurse at the end of last year, this new acquisition confirms our determination to step up the pace of our growth on this strategic market", commented Mr Lindsay Owen-Jones, Chairman and Chief Executive Officer of L'Oréal.
In the words of Mr Paolo Gasparrini, General Manager of L’Oréal China: "Yue-Sai, a symbolic brand for the Chinese woman of today, will naturally slot into L'Oréal's portfolio… The brand strengthens the group's leadership in make-up and facial skincare. The group's technological input will enable Yue-Sai to win new market share".
The acquisition also includes a manufacturing plant in Shanghai. This factory will increase the group's production capacities, ensuring rapid growth for its brands in Asia.
The completion of the deal remains subject to a certain number of conditions in China, and primarily to the agreement of the Chinese authorities.
L'Oréal has been operating on the Chinese market since 1997, achieving sales of € 159 million in 2003, representing like-for-like growth of 69.3%.
L'Oréal's core brands are now all available in China, where the group holds number one positions in several segments, with L’Oréal Paris in premium hair colour, Maybelline in make-up, Vichy in pharmacy sales and Lancôme in selective distribution.
Contact at L'ORÉAL
Mr Mike Rumsby
Tel : +33 (0)126.96.36.199.71