L'Oréal announced that it has signed an agreement to acquire Niely Cosmeticos. Founded in 1981 by Daniel Fonseca de Jesus, Niely Cosmeticos is the largest independent hair coloration and hair care company in Brazil, according to L'Oréal.
"The acquisition of Niely Cosmeticos is a strategic move for L'Oréal in Latin America and Brazil, one of the biggest and fastest growing hair color and hair care markets in the world where consumers have a long tradition of beauty and demanding expectations" said Frédéric Rozé, executive vice president of L'Oréal in charge of the Americas.
With a net revenue of 405 million Brazilian reals (140 million euros) in 2013, the Niely Cosmeticos group has two main brands: Cor & Ton for hair coloration and Niely Gold for shampoos and care. Sold at accessible prices and enjoying a large penetration among the country's middle class, Niely Cosmeticos products are widely distributed through retailers and wholesalers, supermarkets, pharmacies and perfumery chains. Niely Cosmeticos has industrial and logistical facilities in Nova Iguaçu, in the state of Rio.
"We are delighted to join L'Oréal. We are convinced this operation will allow Cor & Ton and Niely Gold consumers to benefit from all of L'Oréal's marketing and research and innovation expertise," said Daniel Fonseca de Jesus, founder, Niely Group, who will be joining L'Oréal Brazil's strategic committee as vice president.
"We are thrilled to welcome Niely to the L'Oréal group. Niely benefits from an excellent position and high penetration of the growing Brazilian middle class and as such will positively complement the products offered by our consumer products division in Brazil," said Didier Tisserand, president of L'Oréal Brazil.
The closing is subject to the usual regulatory approvals.