L’Oréal Group to acquire Brazil’s Niely Cosmeticos Group

French cosmetics and beauty company L’Oréal Group has signed an agreement to acquire Niely Cosmeticos Group, a Brazil-based independent hair coloration and hair-care company.

Financial terms of the deal were not disclosed.

In 2013, Niely Cosmeticos Group reported net revenue of around €140m. Its products are distributed in supermarkets, pharmacies and perfume chains. The company also has industrial and logistical facilities in Rio state.

Speaking about the acquisition, L’Oreal Brazil president Didier Tisserand said: "Niely’s presence among Brazil’s growing middle class will complement the products offered by L’Oreal consumer products division.

"We are thrilled to welcome Niely to the L’Oréal group. Niely benefits from an excellent position and high penetration of the growing Brazilian middle class and as such will positively complement the products offered by our Consumer Products Division in Brazil," he said.

L’Oreal, which gets more than 8% of revenue in Latin America, is currently focusing on new markets in the BRICS region (Brazil, Russia, India, China, and South Africa). It is seeking to add 50 million new customers in Brazil by 2020.

L’Oreal America executive vice-president Frédéric Rozé said: "The acquisition of Niely Cosmeticos is a strategic move for L’Oréal in Latin America and Brazil, one of the biggest and fastest growing hair colour and hair care markets in the world where consumers have a long tradition of beauty and demanding expectations."