The LÂ’OrÃ©al group has signed an agreement to acquire 100% of the Turkish haircare products company Canan*.
Founded in 1981, Canan achieved sales of 26 million euros in 2006, mainly through its brand Ipek which is in 4th position in the mass-market haircare segment.
Ipek is very widely distributed throughout Turkey, both in mass-market and traditional retail outlets. Canan has a factory near Istanbul.
According to Patrick Rabain, President Consumer Products, "The Turkish cosmetics market is expanding strongly and has a very large growth potential. The acquisition of Canan will bolster our positions in haircare products, the largest segment in the market. With its commercial dynamism and its extensive presence in retailing channels, Canan will also accelerate the development of the Division's other brands."
Canan will be consolidated when the transaction will become final following the normal closing conditions and customary governmental review, including antitrust clearance. LÂ’OrÃ©al expects that the acquisition of Canan would be accretive as from 2009.
* This agreement concerns the following companies: Canan Kozmetik, Canan Pazarlama and Seda Plastik.
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This news release may contain some forward-looking statements. Although the Company considers that these statements are based on reasonable hypotheses at the date of publication of this release, they are by their nature subject to risks and uncertainties which could cause actual results to differ materially from those indicated or projected in these statements."
Contacts at L'ORÃ‰ALIndividual shareholders and market authorities
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