Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

L’Oréal Eyes Stake in €3 Billion Perfume Brand Amouage

The French beauty group has been holding talks on the possible purchase of a minority stake in Omani luxury fragrance company but there’s no certainty the deliberations will lead to a transaction and details of the potential deal could change.
The L'Oréal Paris flagship store in Shanghai.
L’Oréal has pursued a string of acquisitions and licensing deals that have helped it build a stable of cosmetics and perfume brands. (Robert Way/Shutterstock)

L’Oréal SA is considering a potential investment in Omani luxury fragrance company Amouage, according to people familiar with the matter.

The French beauty group has been holding talks on the possible purchase of a minority stake in Amouage, the people said, asking not to be identified because the information is private. Amouage’s owner, the SABCO Group conglomerate, has discussed a valuation of more than €3 billion ($3.2 billion) for the business in any deal, according to the people.

Amouage was founded in 1983 with a pitch drawing on the sultanate of Oman’s heritage as a cultural crossroads at the center of ancient trading routes for incense and myrrh. Some of its perfumes fetch €365 for a 100-millilitre bottle, according to Amouage’s website. The company sells its products, marketed as “the Gift of Kings,” in about a dozen standalone boutiques and 1,000 other locations including department stores, perfume shops and airports.

Retail sales at Amouage increased to more than $210 million in 2023, more than doubling over a three-year period. The company is controlled by SABCO, a local business group led by Chairman Sayyid Khalid Bin Hamed Al Busaidi that also has interests in real estate, media, automotive distribution and electrical equipment.

ADVERTISEMENT

L’Oréal has pursued a string of acquisitions and licensing deals that have helped it build a stable of cosmetics and perfume brands. The company last year bought Australian cosmetics brand Aesop for an enterprise value of $2.5 billion.

There’s no certainty the deliberations will lead to a transaction and details of the potential deal could change, the people said. Amouage could also attract interest from other investors. A representative for L’Oréal declined to comment. A spokesperson for SABCO couldn’t immediately comment, while calls to Amouage weren’t answered.

By Dinesh Nair and Pamela Barbaglia

Learn more:

How Fashion Deals Helped L’Oréal Become Prestige Beauty’s Biggest Player

At a Paris event showcasing fragrance innovation, L’Oréal Luxe’s president Cyril Chapuy spoke to BoF about how new additions to the group’s stable of licensed beauty brands like Valentino and Prada helped it surpass rivals, becoming the world’s number-one luxury beauty player.

In This Article
Organisations

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Beauty
Analysis and advice on the fast-evolving beauty business.

The Opportunity in Private Label Beauty

By selling existing formulas under their own name, retailers can tap into the lucrative beauty market without investing in custom formulations. But that doesn’t mean the private label model is an easy win.


Beauty E-Commerce Is Broken

Once thought of as long-term disruptors who would change the way we shop forever, multi-brand online retailers that sell cosmetics, skincare, fragrance and more are facing multiple headwinds.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
The Business of Beauty Global Awards - Deadline 30 April 2024
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
The Business of Beauty Global Awards - Deadline 30 April 2024