- Danielle Wightman-Stone |
L’Oreal has confirmed that it has entered into an exclusive negotiation with the Clarins Group to acquire the Mugler fragrance and fashion businesses, as well as the Azzaro fragrance brand and accessories.
The move, which it said remains “subject to consultation” will be completed later this year, is part of L’Oreal’s plans to reinforce its upmarket cosmetics and fragrance position. While on the other hand the sale would mean that Clarins would exit the perfume and ready-to-wear markets to focus on skin care.
Clarins added that the fragrances industry has “changed dramatically in recent years to become one of the most competitive and demanding markets in terms of marketing investment and critical mass” and that the sale of the Mugler and Azzaro brands would allow them both “to grow amid these new conditions”.
Cyril Chapuy, president L'Oréal Luxe, said in a statement: "The perfume category is at the heart of our global strategy for growth at L'Oréal Luxe. In this context, we would be thrilled to welcome Mugler and Azzaro: these signatures, with a long history in fashion and olfaction, would perfectly complete our portfolio of brands."
Christian and Olivier Courtin-Clarins, president of the Supervisory Board and managing director of the Clarins Group, added: “Our group shares strong values with L’Oréal, including a long-term vision and a management style that is respectful of employees. These similarities have played a significant role in our project to entrust Mugler and Azzaro to the French group and global beauty leader.
“We know that if the project goes through, our two brands will enjoy optimal conditions as part of L’Oréal Luxe, which will guarantee their future growth, benefiting our employees. We would thus be in able to focus on ensuring our Beauty division reaches its full potential.”
The acquisition will include Mugler’s portfolio of perfumes including the blockbuster Angel women’s scent and bestseller, Alien, as well as Azzaro Pour Homme and Chrome, and Wanted and Wanted Girl, which was introduced to target younger consumers.
L’Oreal did not disclose financial details of the planned acquisitions.