Because it's worth it: L'Oreal to buy skincare brand Medik8 in €1bn deal
L'Oreal has agreed to buy a majority stake in the UK company Medik8 as the French cosmetics group strengthens its presence in the booming skincare market.
The private equity firm Inflexion will keep a minority stake as part of the deal while the current management will stay on, L'Oreal said on Monday without disclosing financial details.
L'Oreal has been boosting its portfolio, seeking to take advantage of the interest in skincare driven by social media influencers who use and promote creams and serums on platforms like TikTok. The Financial Times reported last week that the deal was worth roughly €1bn.
L'Oreal shares fell less than 1% in early Paris trading. They have rebounded about 11% so far this year after a slowdown in the US and China weighed on the stock in 2024.
Medik8, founded in 2009 by Elliot Isaacs and based just north of London, specializes in anti-aging treatments. It will join L'Oreal's luxury division.
Inflexion bought Medik8 for an undisclosed amount in 2021. The brand's founder, Mr Isaacs, will remain on the board of Medik8, L'Oreal said.
The deal gives L'Oreal a wider offering in skincare at different prices. Medik8 products are typically more affordable than SkinCeuticals, which L'Oreal bought two decades ago and is now part of its dermatological beauty unit. Cyril Chapuy, who heads the group's luxury division, highlighted Medik8's 'accessible price point'.
The dermatological beauty unit saw the fastest growth among L'Oreal's four divisions last year. The unit also includes affordable brands like CeraVe and Vichy. The group also bought Australian cosmetics brand Aesop in 2023 to strengthen the luxury division, which is the second-largest in sales after the consumer-products unit.
Other well-known L'Oreal brands include mascara maker Maybelline New York and shampoo labels Garnier and Kérastase.
The company in April reported stronger-than-expected sales in the first part of the year, led by demand for high-end make-up and perfumes.
Bloomberg
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