The Boticário Group has announced the acquisition of Vult Cosmética, a Brazilian brand specializing colour cosmetic products. The financial details of the transaction have not been disclosed, but it will subject to prior approval by Brazil’s merger control authorities.
Vult has been present in the Brazilian market since 2004. The company sales its products in 35,000 points of sale throughout the country, mainly in multi-brand stores and pharmacies. "Vult will complement our portfolio and strengthen our multi-brand and multichannel business," said Artur Grynbaum, Grupo Boticario’s chairman said in a release.
Murilo Reggiani and Daniela Cruz, Vult cofounders, will stay within the company to help it growing in the years to come.
While Natura, the other Brazilian cosmetics giant, has achieved a global reach with the purchase of The Body Shop from L’Oréal, Grupo Boticário is consolidating its national base. With acquisition, Grupo Boticário will become the second largest company in colour cosmetics in Brazil, with 15 per cent of market share, just after Avon but before Natura, according to Euromonitor International.
“Vult has a good presence at beauty specialist retailers located in the Northeast of Brazil, a more challenging region for Boticário to sell more expensive colour cosmetics items under the Boticário brand,” said Elton Moritsumu, Senior Research Analyst at Euromonitor International. “The strategy adopted seems be quite similar to what L’Oréal did in 2014 when the French company acquired Niely: be present in segments and regions where the group was not that strong with more suitable brand.”