L’Oréal beauty run by family of world richest woman, Françoise Bettencourt Meyer is considering the possibility of investing in Amouage, a luxury fragrance company based in Oman.
Discussions have been underway regarding L’Oréal potentially acquiring a minority stake in Amouage, although no final decisions have been made, and the terms of the deal remain subject to change, Business of Fashion first reported.
Amouage is currently under the ownership of SABCO Group, a local conglomerate led by Chairman Sayyid Khalid Bin Hamed Al Busaidi. SABCO Group has diverse business interests, including real estate, media, automotive distribution, and electrical equipment.
Why Loreal is interested in the fragrance company
For L’Oréal, known for its strategic acquisitions and licensing deals, investing in Amouage represents a potential opportunity to further diversify its portfolio of cosmetics and perfume brands. In recent years, L’Oréal has expanded its footprint through acquisitions such as Australian cosmetics brand Aesop, acquired for $2.5 billion.
However, it is important to note that discussions between L’Oréal and Amouage are still in the early stages, and there is no guarantee that a deal will materialize.
Additionally, other investors may also express interest in partnering with Amouage. Representatives from L’Oréal and SABCO Group declined to comment on the matter and attempts to reach Amouage for a response were unsuccessful.
What you should know
As both parties continue to explore potential opportunities, the fragrance industry awaits further developments to see if L’Oréal will indeed secure a stake in Amouage, potentially adding another prestigious brand to its ever-growing portfolio.
Founded in 1983, Amouage draws inspiration from Oman’s rich cultural heritage and historical significance as a hub for trade in incense and myrrh along ancient routes. Its premium perfumes, marketed as “the Gift of Kings,” command prices as high as €365 for a 100-milliliter bottle.
With distribution channels spanning standalone boutiques, department stores, perfume shops, and airports, Amouage has seen significant growth in retail sales, surpassing $210 million in 2023, doubling over a three-year period.
