L’Oréal, the cosmetic group based in Paris and a global name in cosmetics and beauty products has announced its acquisition of Brazilian Niely Cosmeticos. L’Oréal, the leading name in hair and beauty in the world made the announcement on March 31. The Brazilian cosmetic company, Niely Cosmetico has a large foothold in the region. The Brazilian cosmetic company Niely Cosmetico is the largest independently operating company for hair care and hair coloration products. Brazil is positioned as a large market for hair care and hair coloration in the world.
As per 2014 statistics the revenue of the Brazilian company is 406 million Reals. The revenue of the Brazilian company Niely Cosmeticos come out to be 130 million euros calculated on the average conversion rate of Brazilian Reals for the year 2013). The Brazilian company Niely Cosmeticos has two primary brands: Cor & Ton which deals with hair coloration and Niely Gold for hair care and shampoo.
Niely Cosmeticos are sold at affordable prices which has a large penetration in the middle class consumers in the country. The products from Niely Cosmeticos are widely distributed across pharmacies, wholesalers, retailers, supermarkets and perfumery chains.
The move to acquire the Brazilian company is strategic for L’Oréal in the Spanish speaking country of Latin America. The acquisition of the Brazilian cosmetics company Niely Cosmetico by L’Oréal will complement the products offerings of the L’Oréal’s Consumer Products Division in Brazil, as announced by L’Oréal.