L'Oreal to Buy Magic Holdings, a Chinese Skincare Company
Posted on August 17, 2013L'Oreal has announced an agreement to purchase Magic Holdings, a Chinese skincare company. Bloomberg reports that L'Oreal is paying $843 million for the company and will use it to expand its marketshare in China. Bloomberg says beauty and personal care product sales will climb 8% to $34 billion this year.
L'Oreal says in a statement that six key shareholders of Magic Holdings representing over 62% of the company's equity have already committed to supporting the acquisition.
One of Magic's specialties is cosmetic facial masks, pictured below. Sales of the masks are booming in China.
L'Oreal says it has been committed to China since 1997. It currently has 3,500 employees working in China.