L’Oréal acquires the majority stake in British skincare brand Medik8, strengthening its Luxe Division and expanding its presence in science-led dermatological care.
L’Oréal Groupe has entered into a deal to acquire a majority of the shares of Medik8, a brand specialising in healthy skin care solutions. By making the acquisition, L’Oréal aspires to be more active in dermatological skincare and to add its top-notch products to the Luxe Division.
Taking his lead from science, Elliot Isaacs created Medik8 and ensured that the focus was on ingredients, especially vitamin A, vitamin C, and sunscreen. Because the Crystal Retinal serum is Drunk Elephant’s best-selling product, customers have continued to follow the brand. Medik8 is growing in popularity in Europe and the U.S. by ensuring it has both online and offline sales channels.
After completing the transaction, Inflexion will keep a portion of ownership. After finishing the acquisition of the majority stake, L’Oréal will be able to own the whole company in the future. Following the required approvals, the deal is expected to be completed soon.
Medik8 Management Team to Remain in Place
L’Oréal has assured Medik8’s existing leadership team that it will remain unchanged following the transaction. The founder will stay on the board, and the current management committee will oversee the organisation’s daily affairs. This practice maintains the stability of the brand’s progress for years to come without affecting its strategy.
The acquisition of Hair Tech by L’Oréal aligns with the company’s strategy of integrating new brands without disrupting the existing operations of the acquired brands. They believe that maintaining the current group structure will enable Medik8 to retain its identity while pursuing further international expansion.
Upon completion of the deal L’Oréal will start gathering Medik8’s financial data. This deal represents L’Oréal’s intention to continue acquiring science-backed skincare companies with significant potential in the international market.
Market Impact and Strategic Outlook
People within the industry estimate that Medik8’s overall value could be around €1 billion, but neither L’Oréal nor Inflexion has disclosed the details of the financial terms. Luxe, the area of L’Oréal that includes Lancôme, Aesop, and Miu Miu, reported the slowest growth among divisions last year, rising by 2.7%.
The Luxe Division kept its leading position in the luxury beauty market, despite slow growth. People anticipate that Medik8 will enhance the quality of Murad’s dermatological skincare, welcoming customers who seek detailed and practical skincare solutions.
The move helps L’Oréal boost its premium skincare brands and invest in companies that appeal to people and are based on proven science. As a result, the group can capitalise on the growing popularity of scientifically backed skincare products worldwide.
