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L’Oréal is poised to seal a roughly €1bn deal to buy UK skincare company Medik8, in the latest push by the French cosmetics giant to bolster its offering of premium beauty brands.
A deal for private equity owned Medik8 is close to being signed and is expected to be announced in the coming days, according to people familiar with the matter, who warned that the timeline could yet slip.
Medik8, founded in 2009 by UK scientist Elliot Isaacs, sells science-backed serums and anti-ageing creams. It was bought in 2021 by London-based private equity firm Inflexion, which has since helped the business push into the US market.
L’Oréal and Inflexion declined to comment on the talks. Medik8 did not immediately respond to a request for comment. JPMorgan is acting as financial adviser to Medik8 and Inflexion. It also declined to comment.
A deal for Medik8 would be the latest in a string of skincare acquisitions for L’Oréal under chief executive Nicolas Hieronimus. L’Oréal bought premium soap maker Aesop for $2.5bn in 2023, its biggest ever acquisition, and also purchased Korean beauty brand Dr.G in December.
The world’s largest beauty company, currently valued at €205bn, also last year purchased a 10 per cent stake in cosmetic injectables specialist Galderma and acquired the beauty license for Prada-owned fashion label Miu Miu.
Hieronimus told the Financial Times earlier this year that L’Oréal was “throwing lines in many directions to expand our playground” and “these participations and forays into new areas are a part of building the future of L’Oréal”.
The acquisition of Medik8 would expand L’Oréal’s offering in the fast growing ‘dermocosmetics’ market, where products have been specially formulated to preserve and restore skin health.
Medik8, which makes its products in house, made a pre-tax profit of £15.6mn on revenues of £45.3mn in the year to September 2023, according to accounts filed at UK Companies House.
L’Oréal already owns top brands including La Roche-Posay, SkinCeuticals and CeraVe. Derma beauty was the company’s second fastest growing division in the first quarter of the year.
Advisers to the beauty industry are predicting more deals. Many brands are courting investment and the price gap between buyers and sellers is narrowing as industry growth slows from pandemic highs, they said.
Last month, American cosmetic brand E.l.f. announced a roughly $1bn deal to buy model Hailey Bieber’s beauty brand Rhode, while luxury group Kering bought perfume house Creed for €3.5bn in 2023.
L’Oréal had a stronger than expected start to the year despite the looming threat of US tariffs, with like-for-like sales rising by 3.5 per cent in the first quarter. The Chinese beauty market recovered more than expected after a tough 2024.
