LʼOréal has announced a takeover bid on all of the shares of Magic Holdings International Limited, a company listed in the Hong Kong Stock Exchange and specialised in the marketing of cosmetic facial masks.
According to LʼOréal, the proposal is supported by Magicʼs Board of Directors, including six key shareholders, representing 62,3% of the companyʼs equity.
Magicʼs turnover in 2012 was approximately 150 million euros (+29% vs 2011). L’Oréal says that facial masks are one of Chinaʼs beauty marketʼs fastest growing areas with very promising development prospects. Magicʼs MG brand is one of Chinaʼs leading brands in this category.
“Relying on Magicʼs highly talented management and teams, LʼOréal intends to develop this Chinese brand by contributing its science based expertise, and using its advanced and applied research in its China by contributing its science based expertise, and using its advanced and applied research in its China Research & Innovation center and across the world,” says the French group.
The MG brand will be added to LʼOréalʼs
Consumer Products Division existing portfolio of brands in China. LʼOréal has been committed to China since 1997. Today LʼOréal has 3 500 employees in China, a Research and Innovation center in Shanghai and two plants in Suzhou and Yichang.
The closure of the transaction is subject to the approval of the Ministry of Commerce of the Peopleʼs Republic of China.
