(Bloomberg) -- L’Oreal 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-milliliter 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.
L’Oreal 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’Oreal declined to comment. A spokesperson for SABCO couldn’t immediately comment, while calls to Amouage weren’t answered.
Read more: L’Oreal Heir Becomes First Woman With $100 Billion Fortune
L’Oreal shares touched fresh record highs in February, with investors betting that the company’s diverse product range and geographic reach would help it weather a slowing economy. The stock has since slumped, though, after L’Oreal reported disappointing fourth-quarter sales because of a slowdown in sales to Chinese travelers.
The stock fell to € at Thursday in Paris, valuing the company at €.
Read more: Terry Smith Dumps Estée Lauder in Favor of Archrival L’Oréal
(Updates to add stock performance, earnings in seventh paragraph.)
More stories like this are available on bloomberg.com
©2024 Bloomberg L.P.
RECOMMENDED FOR YOU
![](https://images.assettype.com/bloombergquint/2024-08-29/p0meefxn/beautiful-landscape-cityscape-seoul-city.jpg?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
Forget The Rains, Temperature Matter More For Inflation, Says HSBC India
![timelogo](/images/amp-time.png)
![](https://images.assettype.com/bloombergquint/2024-02/ece31081-420b-4976-b95d-1898509df07d/VIjayShekharSharma_Paytm.jpg?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
Paytm Founder And Ex-Board Get SEBI Notice Over IPO Irregularities, Company Says Matter Already Disclosed
![timelogo](/images/amp-time.png)
![](https://images.assettype.com/bloombergquint/2023-10/83661c18-ed1e-4657-a6f0-ba64febe897b/Calcutta_High_Court_website.jpg?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
RG Kar Murder Case: Cal High Court Adjourns Hearing In PILs Since Supreme Court Seized Of The Matter
![timelogo](/images/amp-time.png)
![](https://images.assettype.com/bloombergquint/2024-08/734c1310-1a7c-4c8a-b6de-c987f8cf07eb/_1x_1 (1).jpg?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
Berkshire Cuts Apple Stake By Almost Half In Selling Spree
![timelogo](/images/amp-time.png)