L’Oréal Acquires Clarins Group Fragrance Division

The agreement, initially signed last year in October, following several months of exclusive negotiations, sees L’Oréal take on Thierry Mugler (Fashion), Clarins Fragrance Group, Clarins Fragrance Group France, Cosmeurop and Clarins Fragrance Group UK—business activities that totted up 360 million in sales in 2018.
 
At the time of signing the agreement in October, L’Oréal described the fragrance brands within Clarins Group as “successful’, ‘international”, and “iconic”. 
 
“The fragrances industry has changed dramatically in recent years to become one of the most competitive and demanding markets in terms of marketing and investment and critical mass. This project would enable the Mugler and Azzaro brands to continue to grow amid these new conditions,” Clarins said the sale to L’Oréal would fulfil the group’s ambition to ensure its beauty business reached full potential.
 
During negotiations, Cyril Chapuy, president of L’Oréal Luxe said, “The perfume category is at the heart of our global strategy for growth at L’Oréal luxe.”
 
“We look forward to welcoming the Mugler and Azzaro teams to the L’Oréal family, and to accompany them, especially in this difficult time,” said Chapuy.
 
Last year, L’Oréal invested in fragrances, with a flurry of important perfume launches: Lancôme Idôle in August; Yves Saint Laurent Libre in September; and Valentino Born in Roma in September.
 
Jean-Paul Agon, chairman and CEO of L’Oréal, said these initiatives were important in bolstering a relatively flat sales environment in Western Europe. Speaking to investors in the company’s first-half (H1) 2019 earnings call last year, Agon said, “You know that of all zones, the one that is most important in terms of fragrance is Western Europe. So, we really believe that for the luxury division, for example, the launch of these three fragrance initiatives will definitely be very important.” 
 
Like many beauty firms worldwide, L’Oréal has acknowledged the impact the ongoing coronavirus (COVID-19) pandemic will have on business.
 
L’Oréal has pushed back its annual general meeting and suspended 2020 guidance as it braces for a more significant impact on business than first anticipated from the ongoing coronavirus crisis.