PARIS/LONDON  – L’Oreal (OREP.PA), has agreed to acquire a majority stake in British skincare brand Medik8, boosting the French cosmetics giant’s position in the fast-growing dermatological skincare market.

Neither L’Oreal nor UK-based private equity firm Inflexion, which is selling the stake, disclosed the terms of the deal in separate statements on Monday.

A person with knowledge of the situation said the deal puts Medik8’s enterprise value at around 1 billion euros.

“This acquisition further strengthens L’Oreal’s luxe portfolio, adding a premium science-backed skincare brand with a proven track record of success, with strong potential for global growth,” L’Oreal said in its statement.

Sales growth at L’Oreal’s luxury division, its second largest which houses MiuMiu perfume, Lancome skincare and Aesop cleansers, slowed to 2.7% last year as higher inflation prompted shoppers to opt for less expensive brands.

That was the lowest growth of all of L’Oreal’s segments, but outpaced the beauty division of luxury rival LVMH.

Inflexion will retain a minority shareholding in Medik8, which focuses on vitamin A-based anti-ageing creams and serums, although L’Oreal has secured rights to buy out minority shareholders in full.

News Credits- Reuters