Chinese expansion for L'Oréal

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L'Oréal has signed an agreement to purchase Chinese cosmetics and
skincare brand, Yue-Sai, from US giant Coty. The deal underlines
the French company's growing presence in the Asian market.

L'Oréal​ has been operating on the Chinese market since 1997, achieving sales of €159 million in 2003, representing like-for-like growth of 69.3 per cent.

"After acquiring Mininurse at the end of last year, this new Chinese acquisition only serves to confirm our determination to step up the pace of growth in China,"​ said the CEO of L'Oreal Lindsay Owen-Jones.

The Lancaster Group - the company that managed Yue-Sai - had hinted in recent months that the Chinese brand was up for sale having been shown a lot of international interest by big-name industry competitors.

As part of the deal, L'Oréal is to acquire a manufacturing plant in Shanghai, which it plans to use to boost production capacity of its brands for the Asian market.

"Yue-Sai - a symbolic brand for the Chinese woman of today - will naturally slot into L'Oréal's portfolio. The brand strengthens the group's leadership in make-up and facial skincare. The group's technological input will also enable Yue-Sai to win new market share,"​ said manager of L'Oreal China Paolo Gasparrini.

Yue-Sai - sold in some 800 department stores in China - was founded in 1992 by Chinese celebrity Yue-Sai Kan. The completion of the acquisition is subject to approval by the Chinese authorities and other locally required conditions.

All of L'Oréal's core brands are now available in China. The group holds number one positions in several segments, for example L'Oréal Paris in premium hair colour, Maybelline in make-up, Vichy in pharmacy sales and Lancôme in selective distribution.

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