The spa industry could gain a major player if recently announced talks by L'Oreal to buy spa brands Carita and Decléor come to fruition.
L'Oreal has announced it's in exclusive negotiations to acquire the two companies from Japan's Shiseido for around E230m (US$314.3).
Shiseido has made its first annual loss, and the disposal is thought to relate to this, as it focuses on its core assets.
L'Oreal said the two spa companies are "inspirational and complementary," and that they grew into some of the world's largest cosmetic providers under Shiseido's management. L'Oreal products division President An Verhulst-Santos said: "Decléor and Carita are two beautiful, prominent beauty institute brands, particularly well-established in Western Europe. Their growth perspectives, especially internationally, are very promising,”
Decléor was established in 1974 and is now one of the most respected manufacturers and creators of aromatherapy products for spas, while Carita – created in 1945 by sisters Maria & Rosy Carita – has become known for its high-end pampering and luxurious Maison de Beauté in Rue Faubourg Saint-Honoré, Paris. The two companies had combined annual sales of around E100m in 2012.
L'Oreal claims to be the world's biggest beauty company, with 72,600 employees, 28 brands and €22.5 billion in sales in 2012.
Both businesses are reportedly consulting employee representatives and will then submit the transaction to regulators.
Industry commentators believe if the deal goes ahead, L'Oreal will utilise Carita's expertise in hair products to develop its salon business, while the acquisitions would give the company a strong foothold in the spa market to develop partnerships and directly-operated, branded facilities.
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