L’Oreal to acquire Turkish hair care company
PARIS L’Oreal group has announced an agreement to acquire Turkish hair care products company Canan.
The deal is subject to closing conditions and customary governmental review, including antitrust clearance. L’Oreal expects that the acquisition of Canan will be accretive from 2009.
Founded in 1981, Canan achieved sales of €26 million in 2006, mainly through its brand Ipek, which is in fourth position in the mass-market hair care segment.
Ipek is widely distributed throughout Turkey, both in mass market and traditional retail outlets. Canan has a factory near Istanbul.
According to Patrick Rabain, president of 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 hair care 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.”
Ann Taylor introduces ‘possibilities’ beauty line
NEW YORK The cosmetics world continues to grow increasingly competitive as more apparel retailers announce plans to jump aboard the beauty bandwagon.
Among the latest retailers to make such a move is Ann Taylor, which intends to launch a new beauty collection in all 350 of its stores and online.
The new beauty collection consists of a fragrance called possibilities, Ann Taylor, as well as a line of body care products. The company intends to expand its presence in the beauty category over time, including a line of products for its Loft division next year. The initiative is part of its overall long-term strategy for growth, according to the company.
Selected to be the face of possibilities is supermodel Petra Nemcova, who founded the “Happy Hearts Fund” charitable foundation. The mission of the foundation is to globally aid children who have suffered from a disaster by bridging existing gaps in education, medical support and emotional health. To support the cause, Ann Taylor will donate $2 for each possibilities fragrance purchase made through Dec. 31, up to a maximum donation of $50,000.
The news came as reports spread that apparel retailer New York & Company is launching this month a line of bath and body care products.
Physicans Formula announces Q3 results
AZUSA, Calif. Physicians Formula Holdings posted a 9.4 percent increase in net sales for the third quarter and is optimistic about 2008 as it introduces its new Organic Wear line.
Net sales for the quarter ended Sept. 30 totaled $19.8 million, up 9.4 percent compared with $18.1 million in the year-ago period. This is in line with the outlook range of $18.5 million to $20.5 million.
Net income per diluted common share totaled 1 cent on about 14.6 million diluted common shares outstanding. Excluding a 5 cent per share non-cash charge for stock-based compensation after tax, adjusted net income per diluted common share would have been 6 cents per share.
“I am pleased with the additional space allocations and increased distribution for 2008. I believe this illustrates the overall strength of the brand and our successful product innovation, as well as the expertise and talents of everyone here at Physicians Formula,” stated Ingrid Jackel, chief executive officer of Physicians Formula.
As part of its 2008 initiatives, the company will introduce at retail beginning in February its new Organic Wear line, a makeup line consisting of 42 SKUs featuring Ecocert organic certification. Ecocert is an internationally recognized organic certification designed to guarantee the genuine practice of environmental respect throughout the formulation and manufacturing of the product.
“With an increasing desire for greener lifestyles, more than half of all U.S. women seek personal care products with natural ingredients and 44 percent look specifically for organic ingredients,” stated Jackel. “It made sense to offer a complete line of makeup products based on certified organic ingredients to fulfill the needs of this new demographic.”
The line, which has a shelf life of up to 24 months, includes such products as a concealer stick, tinted moisturizer, liquid bronzer and loose powder.
All formulations feature a proprietary EcoBlend complex that features OrganicSoy and Eco-Olive, certified organic soy and olive.
The packaging is the first-ever, patent-pending dual-compartment paper compact. The compact uses 93 percent less plastic than the traditional plastic compact.