Acquisition Of Respons In Scandinavia Group

Paris, 13 november 2000 - The L'Oréal group, the world's leading cosmetics company, announces the acquisition of Respons, the Scandinavian shampoo brand, from Colgate Palmolive Company.

Launched in Northern Europe in 1985, Respons is recognized as one of the top three brands of haircare in Scandinavia, where it makes three quarters of its sales.

Annual net sales for the brand in1999 were about 11 millions Euros. The product range includes shampoos and conditioners, of which the most well known are Volume Care, Daily Care, Repair Care or Extra Care.

L'Oréal already has a strong foothold in the Scandinavian haircare market, via Elsève by L'Oréal Paris and Fructis by Laboratoires Garnier.

"The group's position has been reinforced through this acquisition which perfectly rounds off Laboratoire Garnier's product catalogue," declared Franklin Berrebi, General Manager of L'Oréal's Europe Region.
"L'Oréal is already a leader on the Danish market ; it has now therefore obtained a choice position on the Swedish haircare market, opening up rapid growth prospects in Norway and Finland."

The financial terms of the agreement were not disclosed. The transaction is expected to become effective on November 30 2000 at the latest. The finalising of this operation will be subject to the usual approval procedures, both from government authorities and each company's Board of Directors.
Given the synergies which should arise from this acquisition, the operation should be highly accretive as from the first year.