L’Oréal finalizes the acquisition of Mugler and Azzaro perfumes and abandons its targets for 2020
As the coronavirus pandemic progresses rapidly, l’Oréal finalizes the acquisition of Muggler and Azzaro. In parallel, the group which achieved in 2019 a turnover of 29.87 billion euros, announced that it was also renouncing its financial objectives (guidance) for 2020.
After obtaining the necessary authorizations from the competent authorities, l’Oréal finalized the acquisition of the Mugler brands and Azzaro perfumes. The world number one in cosmetics thus acquires the “fragrance” division of Clarins, which represented a turnover of 340 million euros in 2018. The amount of the transaction has not been disclosed.
“We are delighted to welcome the Mugler and Azzaro teams who are joining us into the L’Oréal family, and we will be able to take care of them, especially in these difficult times”, comments Cyril Chapuy, Chief Executive Officer of L’Oréal Luxe.
The two companies announced in early July 2019 that they have entered into exclusive negotiations for this transaction.
Abandonment of 2020 targets
The lack of visibility on the calendar for ending the health crisis also led the group to suspend its forecasts. The three-color giant will provide more information when it publishes its first quarter turnover on April 16, 2020, and specifies that this turnover should drop by around 5% compared to last year.
“The spread of the pandemic to all geographical areas and the measures taken by the various countries in terms of store closings and consumer containment will have a higher impact than initially planned in the coming months on the consumption of skincare and beauty products and consequently on our business, even if we are currently seeing an encouraging recovery in consumption in China,” said L’Oréal.
Let’s also remember that L’Oréal also announced on March 30 that it would not use “partial unemployment in France until the end of June”. The group chaired by Jean-Paul Agon has in fact partially or totally suspended the activity of several categories of staff, that is to say more than 3,000 people in France, according to its figures. The manufacturer has also “committed since the implementation of containment” to maintain 100% “fixed compensation” of “all of its employees in France” – or 13,400 people.
Read also > L’Oréal confident of 2020 outlook despite coronavirus disruption
Featured Photo : © Azzaro
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