L’Oréal strengthens professional skincare segment by investing in Functionalab
By acquiring a minority stake in the Canadian group Functionalab, the global beauty giant L’Oréal has strengthened its position in the professional skincare market. L’Oréal entered the segment in 2005 with its acquisition of the US professional skincare business SkinCeuticals which is part of the group’s Active Cosmetics division which also includes CeraVe and Vichy.
Functionalab is recognised as a leader amongst Canadian aesthetic medicine clinics and runs the brands Dermapure and Project Skin MD, which specialise in professional skincare. With a network of 15 aesthetic medicine clinics in Canada, the business offers a full range of non-invasive skin rejuvenation treatments including laser, injections, and cryolipolysis treatments across its Dermapure and Project Skin MD clinics.
“Aesthetic procedures are increasingly integrated into the consumer’s beauty routines,” said Brigitte Liberman, L’Oréal’s President Active, Cosmetics Division. “With this investment, we will be able to better understand their expectations in regard to procedures, aesthetic gestures, and offer them tailor-made beauty routines. This is also a great opportunity for the SkinCeuticals brand to establish a strong partnership with a Canadian leader of aesthetic medicine clinics.” The business will expand SkinCeuticals’ distribution to all Dermapure clinics.
This minority stake investment in Functionalab was made though BOLD Business Opportunities for L’Oréal Development, a corporate venture capital fund created by L’Oréal in December 2018 to facilitate minority stake acquisitions in innovative start-ups in the beauty sector. In October, L’Oréal invested in global early growth venture capital fund Cathay Innovation through BOLD as it plans to invest in cosmetics start-ups in China.
With beauty tech, green beauty, dermo-cosmetics, and perfumes, the business is expanding on all fronts. L'Oréal is continuing to invest across all sectors of the cosmetics industry.
In the third quarter of its financial year, L'Oréal saw sales grow by 11% to reach a turnover of €7.183 billion.
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