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L’Oréal is poised to seal off a deal of around 1 billion euros to buy British skincare company Medik8 in an updated push by the French cosmetics giant to bolster its premium beauty brand offering.
The contract for Medik8, owned by Private Equity, has been signed and will be announced in the coming days, according to people familiar with the issue that warned that the timeline could still slip.
Founded in 2009 by British scientist Elliot Isaacs, Medik8 sells science-backed serum and anti-aging creams. It was purchased in 2021 by Dellexion, a London-based private equity company. This has helped businesses push into the US market.
L’Oréal and Bree declined to comment on the consultation. Medik8 did not respond immediately to requests for comment. JPMorgan serves as financial advisor for Medik8 and Folding. He also declined to comment.
The Medik8 deal is the latest in a series of L’Oréal skincare acquisitions under the CEO of Nicolas Hieronimus. L’Oréal bought premium soap maker AESOP in 2023 for $2.5 billion.
The world’s largest beauty company, now worth 200 billion euros, bought a 10% stake in cosmetic injection specialist Galderma last year and acquired a beauty license from Prada-owned fashion label Miu Miu.
Hieronimus told the Financial Times earlier this year that L’Oréal “threw lines in many directions to expand our playground.”
The acquisition of Medik8 will expand L’Oréal’s offering in the rapidly growing “Dermocosmetics” market where products are specially formulated to restore skin health.
L’Oréal already owns top brands such as La Roche-Posay, Skinceuticals and Cerave. Derma Beauty was the company’s second fastest growing division in the first quarter of the year.
Beauty industry advisors are predicting more transactions. With many brands looking for investment, the price gap between buyers and sellers is narrowing as industry growth slows down from pandemic highs, they said.
Last month, American cosmetics brand ELF announced a deal of about $1 billion to buy model Haley Beaver beauty brand Lord.
L’Oréal has started a stronger year than expected despite the looming threat of US tariffs, with similar sales rising 3.5% in the first quarter. China’s beauty market has recovered more than expected after the tough 2024.
