L’Oreal to acquire YSL Beaute Holding in $1.68 billion deal
PARIS L’Oreal plans to acquire PPR’s YSL Beaute Holding for 1.15 billion euros (U.S.$1.68 billion) and license the Yves Saint Laurent and Boucheron perfumes and cosmetics.
Under the agreement, L’Oreal will also take over the licenses for the Stella McCartney, Oscar de la Renta and Ermenegildo Zegna brands of perfumes and cosmetics.
PPR will retain ownership of the Yves Saint Laurent, Boucheron and Stella McCartney brands under the agreement. The deal is expected to close in the coming weeks.
“This proposed agreement represents a great opportunity for L’Oreal and its Luxury Products Division. Yves Saint Laurent is a mythical French luxury brand. It is admired the world over and is particularly complementary with our current brands,” stated Jean-Paul Agon, L’Oreal chief executive officer. “We are convinced that its integration into our Luxury Products Division would speed up its development. This strategic agreement will reinforce our position in the luxury cosmetics market.”
YSL Beaute generated sales of about 630 million euros (U.S. $920 million) in 2006 wit this Yves Saint Laurent brand as well as with the Roger&Gallet, Boucheron, Stella McCartney, Oscar de la Renta and Ermenegildo Zegna brands. YSL Beaute is part of PPR’s Gucci Group luxury division.