L’Oréal to acquire Thierry Mugler and Loris Azzaro
Faced with Coty’s global success, placing the company at the #1 spot of perfume production and sales worldwide, L’Oréal made the first steps to acquire another two fragrance brands, Thierry Mugler and Loris Azzaro, which, following Valentino in 2018, are aimed at sky-rocketing profits in 2020.
With the addition of these brands and their iconic juices such as Angel or Azzaro Pour Homme, L’Oréal will further strengthen its position in the perfume sector. An activity in which the French group recorded a 7.8% growth in sales in 2018, to 2.5 billion Euros. “The perfume category is at the heart of L’Oréal Luxe’s global growth strategy,” explained Cyril Chapuy, General Manager of L’Oréal’s division in Les Echos. “These signatures with a long history in fashion and olfaction would perfectly complement our brand portfolio,” he adds.
The multi-billion dollar company currently owns the rights to Biotherm, Cacharel, Diesel, parfums Giorgio Armani, Guy Laroche, Helena Rubinstein, Lancome, Maison Margiela, Paloma Picasso, Ralph Lauren, Roger & Gallet, Viktor & Rolf, and Saint Laurent, among others.
But why would the previous share-holder, the Clarins Group, immersed in the creation of Parfums Mugler from the very start with the iconic Angel, which revolutionized the industry with its sweet patchouli scent in 1992, forsake their prodigy child? The reason has to do with focus. The Mugler and Azzaro sales were estimated at 25% of Clarins’ turnover of 1.6 billion euros, i.e. around 400 million euros. By selling this fragrance division, Clarins, still owned by the family of Jacques Courtin Clarins, who founded it back in the 1950s, wants to focus on its skin care business and invest in the development of its brand, especially in China, as well as in its digital transformation. Virginie Courtin-Clarins became the president of Mugler fashion and a member of the board of directors in 2016, while in 2018, the Groups created the Clarins Domain at the heart of a preserved area in the Alps.
The advice for separating skincare from fragrances came from Rothschild & Co, according to those in the know, who suggested that perfume being a hotly contended sector, the two brands of Azzaro and Mugler would be better ensured of their future within a corporation that would provide optimal conditions for their durability. Olivier and Christian Clarins, respectively president and general director of the Clarins Group, seemed to agree. The fashion branch of Mugler is also to be turned over to L’Oréal.
The company has just recently announced that they’re strengthening their industrial output on French soil, dedicating the plant at Aulnay-sous-Bois to perfume production. This makes the plant a most important segment of the luxury perfumes division of the gigantic corporation that is L’Oréal. The company spared no expense, investing 15 million euros, so expect the deal with Clarins to get this investment back to the buying company. The exact number is not announced yet, as the deal will finalize in the later half of 2019.