Fragrance brands

L’Oréal will buy the perfume brands Mugler and Azzaro from the Clarins group

Exclusive acquisition negotiations in progress

L’Oreal entered into exclusive negotiations with the Clarins group in July this year, stating that the fragrance was “in the heart”​ of its global growth strategy.

At the time, Clarins said a sale to L’Oréal would fulfill the group’s ambition to ensure its beauty business reaches its full potential. “The fragrance industry has changed dramatically in recent years to become one of the most competitive and demanding markets in terms of marketing, investment and critical mass. This project would allow the Mugler and Azzaro brands to continue to develop under these new conditions.

L’Oréal and the Clarins group yesterday signed the acquisition agreement, the finalization of which remains subject to the usual regulatory approvals.

“Iconic Perfume Brands”

The full acquisition agreement includes Mugler, Thierry Mugler (Fashion), Clarins Fragrance Group, Clarins Fragrance Group France, Cosmeurop and Clarins Fragrance Group UK – businesses which achieved sales of €340 million in 2018 The L’Oréal Group achieved a turnover of €26.9 billion in 2018.

“The Clarins group owns successful international iconic perfume brands and benefits from know-how that is recognized and appreciated in the industry. Angel has revolutionized the market, Alien has built solid positions, Azzaro Pour Homme and Chrome are classics, and Wanted and Wanted Girls are appealing to millennials,”L’Oreal said in a statement.

Mugler recently unveiled a range of refillable, scented cosmetic brushes for its Angel, Alien and Aura brands that could also be used for skincare and makeup application. A year earlier, the Mugler brand had also launched perfume pencils.

L’Oreal continues: “By joining L’Oréal, the Mugler and Azzaro brands will continue their international development while benefiting from the resources of the world leader in beauty in marketing, distribution and innovation.

A perfume to strengthen the “flattened” Western Europe

In August, L’Oreal Chairman and CEO Jean-Paul Agon told investors during the company’s second-quarter earnings call that Western Europe continued to be “flat”.Asked by an analyst what could support business in the region, Agon said the company had several growth initiatives, particularly in fragrances.

He said L’Oréal had planned a Lancôme Idôle fragrance launch, which took place in mid-August; a fragrance launch under Yves Saint Laurent, which took place in early September; and a Valentino Born in Roma duo fragrance launch, which happened at a similar time with airport rollouts slated for later this year.

“You know that of all the areas, the one that is the most important in terms of perfume is Western Europe. So we really think that for the luxury division, for example, the launch of these three fragrance initiatives will certainly be very important.Agon said.