L’Oréal S.A., headquartered in Clichy, France, is the world’s leading beauty company, founded in 1909. With a diverse portfolio of 37 international brands, including Maybelline, Garnier, and Lancôme, L’Oréal operates across all beauty segments: skincare, haircare, makeup, and fragrance. The company is renowned for its commitment to innovation, sustainability, and inclusivity, employing over 90,000 people worldwide and generating €41.18 billion in sales in 2023.
The beauty and personal care industry is a dynamic sector characterized by rapid innovation, evolving consumer preferences, and a growing emphasis on digital engagement. Companies in this space are increasingly focusing on sustainability, personalized products, and technological integration to meet the demands of a diverse global customer base. The industry has seen significant consolidation, with major players acquiring niche brands to expand their market share and cater to specific consumer segments.
Major M&A Deals by L’Oréal
L’Oréal has strategically expanded its portfolio through numerous acquisitions. Notable deals include:
- Aēsop (2023) – Acquired for $2.525 billion, marking L’Oréal’s largest acquisition to date.
- CeraVe, AcneFree, and Ambi (2017) – Purchased from Valeant Pharmaceuticals for $1.3 billion, enhancing L’Oréal’s skincare offerings.
- NYX Professional Makeup (2014) – Acquired to strengthen L’Oréal’s position in the U.S. mass-market makeup segment.
- Magic Holdings (2014) – Chinese facial mask leader acquired for $840 million, expanding L’Oréal’s presence in Asia.
- Decléor and Carita (2014) – Acquired from Shiseido for €227.5 million, enhancing L’Oréal’s professional skincare portfolio.
- YSL Beauté (2008) – Acquired for $1.8 billion, adding a prestigious brand to L’Oréal’s luxury division.
- The Body Shop (2006) – Purchased for £562 million, later sold in 2017 for $1.1 billion.
- Urban Decay (2012) – Acquired to appeal to younger consumers seeking edgy makeup options.
- ModiFace (2018) – Acquisition of an AR beauty tech company to enhance digital capabilities.
- Takami Co. (2021) – Acquired to strengthen L’Oréal’s position in the Japanese skincare market.
- Skinbetter Science (2022) – Acquisition to bolster L’Oréal’s dermatological skincare offerings.
- Youth To The People (2021) – Acquired to expand L’Oréal’s portfolio with a focus on vegan skincare products.
Divestitures and Portfolio Realignment
L’Oréal has also streamlined its portfolio through strategic divestitures:
- The Body Shop was sold to Natura Cosméticos in 2017 for $1.1 billion, allowing L’Oréal to focus on its core brands.
- Decléor was discontinued in 2023 due to underperformance, despite being part of the L’Oréal Dermatological Beauty division.
- Carol’s Daughter was sold in March 2025 to an unnamed entrepreneur, reflecting L’Oréal’s ongoing portfolio optimization.
Recent Activities (2024–2025)
In the past two years, L’Oréal has continued its strategic expansion:
- Miu Miu (2024) – Entered a long-term global licensing agreement to develop luxury beauty products, enhancing L’Oréal’s luxury portfolio.
- Galderma (2024) – Acquired a 10% stake in the dermatology firm, marking L’Oréal’s return to the anti-wrinkle injectables market and aligning with trends in medical aesthetics.
- Gjosa (2024) – Acquired the Swiss water conservation tech startup to advance L’Oréal’s sustainability initiatives.
- Dr.G (2024) – Acquired a stake in the Korean cosmetics brand, expanding L’Oréal’s presence in the Asian market .
These moves have been largely successful, aligning with L’Oréal’s strategic goals of sustainability, digital innovation, and market expansion. However, the discontinuation of Decléor highlights the challenges in maintaining brand performance across diverse markets.
Successful vs. Not Successful
Among L’Oréal’s most successful deals, the acquisition of CeraVe in 2017 stands out—its science-backed, dermatologist-recommended formulas helped L’Oréal dominate the dermocosmetics space, contributing significantly to revenue growth. Similarly, NYX Professional Makeup has thrived as a bold, affordable brand appealing to younger consumers, especially in North America.
The Aēsop acquisition in 2023, despite its high price tag, is proving strategically sound, bolstering L’Oréal’s luxury segment with a cult-favorite, sustainability-driven brand. The ModiFace and Gjosa deals have also added long-term value by strengthening L’Oréal’s digital and environmental credentials.
On the flip side, the purchase of The Body Shop in 2006 ultimately fell short of expectations—despite initial alignment with ethical beauty trends, the brand underperformed and was sold in 2017. Similarly, Decléor, despite being part of a promising skincare niche, was discontinued in 2023 due to stagnating performance.
These less successful ventures underline the challenges of integrating niche or legacy brands in a rapidly evolving market, reinforcing L’Oréal’s ongoing commitment to strategic portfolio realignment.
Strategic Decisions and Rationale
L’Oréal’s M&A strategy is driven by several key objectives:
- Market Expansion: Acquisitions like Magic Holdings and Dr.G aim to strengthen L’Oréal’s footprint in high-growth regions such as Asia.
- Portfolio Diversification: L’Oréal seeks to balance its offering across all beauty categories—skincare, haircare, makeup, and fragrance. The acquisitions of CeraVe (for dermocosmetics), NYX (for mass-market makeup), and Aēsop (for luxury skincare) demonstrate a deliberate approach to appealing to different consumer segments and price points.
- Sustainability & Technology: The acquisition of Gjosa, a company developing water-efficient hair-washing technology, and ModiFace, an AR beauty tech startup, highlight L’Oréal’s commitment to innovation and sustainability. These deals reflect broader industry shifts, where technology and eco-consciousness are becoming major competitive advantages.
- Luxury Focus: Strategic licensing partnerships, like the recent deal with Miu Miu in 2024, and acquisitions such as YSL Beauté and Aēsop, signal a strong push into the luxury beauty space. These decisions are based on the sector’s high margins and resilience to economic fluctuations.
- Scientific & Dermatological Innovation: L’Oréal has intensified its presence in dermocosmetics and medical aesthetics through acquisitions such as Skinbetter Science and investments in companies like Galderma. These moves reflect a focus on efficacy, science-driven skincare, and a growing demand for preventative and therapeutic beauty solutions.
- Digital Transformation: The ModiFace acquisition and investments in e-commerce and direct-to-consumer platforms underpin L’Oréal’s strategic digital acceleration. With more consumers shopping online and seeking personalized experiences, these capabilities are crucial for maintaining a competitive edge.
L’Oréal’s M&A and divestiture strategies over the past two decades reflect a well-calibrated approach to maintaining market leadership. By acquiring high-growth, innovative, and diverse brands while divesting underperforming or non-core assets, L’Oréal ensures agility in an evolving beauty landscape. The company’s continued success in 2024 and 2025—marked by its largest acquisition ever (Aēsop), expansion into luxury (Miu Miu), and deeper investment in dermatology (Galderma)—shows a clear trajectory: combining science, sustainability, and technology to shape the future of beauty.
As beauty becomes increasingly personalized, inclusive, and tech-driven, L’Oréal appears not only ready but eager to lead the charge.