Following the approval by in the general meeting of Magic Holdings International Limited shareholders, L’Oréal announced the acquisition is now effective. This move marks L’Oréal’s biggest investment to date in the Chinese beauty market and further strengthens the company's leadership position in the world’s third-largest beauty market.
Jean-Paul Agon, L'Oréalchairman and CEO, said, “This is the most important acquisition for L’Oréal since the acquisition of Yves Saint Laurent Beauté in 2008. The MG brand beautifully completes the brand portfolio of our consumer products division in China: L’Oréal Paris, Maybelline New York and MG, the iconic Chinese brand. This acquisition marks the acceleration of our conquest of new consumers in China.”
A specialist in cosmetic facial masks, Magic’s turnover in 2013 was approximately €166 million (+14% in Hong Kong dollars vs. previous year). Magic’s MG brand is China’s leading brand in this category. Facial masks are one of China’s beauty market’s fastest growing areas, with very promising development prospects.
Yuyuan She, CEO of Magic Holdings, said, “We are delighted to join L’Oréal. We believe our brand will benefit from L’Oréal’s extensive science based expertise and its world-class management experience and know-how. This move will help to build the special value of the facial mask sector, continuously grow the sector and strengthen MG’s leadership.”
From now on, Magic Holdings will also contribute to the growth of L’Oréal’s consumer product division in China. L’Oréal China disclosed sales of 13.28 billion Yuan (€1.55 billion ) in 2013, an increase of 10.2% versus a year ago. Also, 2013 marked the 13th consecutive year of double-digit growth for L’Oréal in China. The record high turnover and a track record of strong growth confirm China’s position as the third largest market for L’Oréal.