Global beauty powerhouse L’Oréal has inked an agreement to acquire Logocos Naturkosmetik, a pioneer in natural cosmetics. Logocos is based in Hanover, Germany and its key brands include Logona and Sante.
The announcement, made last week, comes at a time when the market for natural and organic beauty is booming. From sales of $11.1 billion in 2016 the sector is forecast to reach $21.8 billion by 2024 (source: Statista).
Founded in 1978 by a naturopath, Logocos Naturkosmetik employs about 340 people and had net sales in 2017 of €59 million (US$79.8 million) across Germany and other countries in Europe. With the acquisition, L’Oréal plans to widen the company’s sales into other international markets though travel retail, at this stage, was not mentioned as a strategic channel of expansion.
All Logocos’s brands are vegan and bio-certified, with a range of products using their own plant extracts and natural ingredients derived from organic farming.
Logona products cover haircare, hair colour, skincare and hygiene product categories and are found in specialised distribution – mainly organic stores at premium pricing. The Sante line includes haircare, skincare, hygiene and make-up and is found mainly in mass retail at more accessible prices for younger consumers.
L’Oréal Consumer Products Division President Alexis Perakis-Valat said:“Logocos brings us two authentic and certified natural brands as well as a unique expertise from a worldwide pioneer of the organic beauty market. In line with L’Oréal’s strategy to ‘seize what starts’ this acquisition reinforces the position of the Consumer Products Division on one of beauty’s major ascending trends.”
L’Oréal Germany General Manager Fabrice Megarbane added: “L’Oréal Germany is excited to acquire an expert in natural cosmetics in a market where the desire for organic cosmetics is among the highest in Western Europe.”
The transaction is expected to be completed in a few months after customary regulatory approvals.
