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.”