L’Oréal SA is contemplating a possible funding in Omani luxurious perfume firm Amouage, in accordance with folks accustomed to the matter.
The French magnificence group has been holding talks on the doable buy of a minority stake in Amouage, the folks mentioned, asking to not be recognized as a result of the knowledge is personal. Amouage’s proprietor, the SABCO Group conglomerate, has mentioned a valuation of greater than €3 billion ($3.2 billion) for the enterprise in any deal, in accordance with the folks.
Amouage was based in 1983 with a pitch drawing on the sultanate of Oman’s heritage as a cultural crossroads on the heart of historical buying and selling routes for incense and myrrh. A few of its perfumes fetch €365 for a 100-millilitre bottle, in accordance with Amouage’s web site. The corporate sells its merchandise, marketed as “the Present of Kings,” in a couple of dozen standalone boutiques and 1,000 different places together with shops, fragrance outlets and airports.
Retail gross sales at Amouage elevated to greater than $210 million in 2023, greater than doubling over a three-year interval. The corporate is managed by SABCO, an area enterprise group led by Chairman Sayyid Khalid Bin Hamed Al Busaidi that additionally has pursuits in actual property, media, automotive distribution and electrical gear.
L’Oréal has pursued a string of acquisitions and licensing offers which have helped it construct a steady of cosmetics and fragrance manufacturers. The corporate final 12 months purchased Australian cosmetics model Aesop for an enterprise worth of $2.5 billion.
There’s no certainty the deliberations will result in a transaction and particulars of the potential deal might change, the folks mentioned. Amouage might additionally entice curiosity from different buyers. A consultant for L’Oréal declined to remark. A spokesperson for SABCO couldn’t instantly remark, whereas calls to Amouage weren’t answered.
By Dinesh Nair and Pamela Barbaglia
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