L’Oreal has agreed to acquire a majority stake in Medik8, a fast-growing British skincare company known for its anti-ageing products, as the French beauty giant continues to strengthen its position in the global skincare market.

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The deal, announced Monday, will see private equity firm Inflexion retain a minority stake, while Medik8’s existing management remains in place. Although financial terms were not disclosed, the Financial Times last week reported the transaction is valued at around €1 billion.

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Founded in 2009 by Elliot Isaacs, Medik8 has become a cult favourite among skincare enthusiasts for its science-led approach to ageing and skin health. Its popular products, such as the Crystal Retinal 6 night serum, retail at more accessible price points than many high-end brands and are stocked by major retailers like Sephora.

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Medik8 will be integrated into L’Oreal’s luxury division, joining a portfolio that includes SkinCeuticals, Kérastase, and Aesop. The move marks a strategic effort to broaden the group’s offering within the premium skincare segment while catering to rising demand for mid-range luxury.

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“Medik8’s accessible price point complements our existing brands,” said Cyril Chapuy, head of L’Oreal’s luxury division. “This acquisition strengthens our reach in a dynamic, fast-growing skincare category.”

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The dermatological beauty segment has been L’Oreal’s fastest-growing division over the past year, powered by consumer appetite for evidence-based, health-oriented skincare. Brands like CeraVe and Vichy have seen booming demand thanks in part to endorsements from dermatologists and influencers on platforms such as TikTok.

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L’Oreal’s broader skincare push is part of a shift across the beauty industry, where consumers are increasingly opting for functional skincare over traditional cosmetics. The acquisition follows L’Oreal’s 2023 purchase of Australian luxury brand Aesop and reflects the group’s wider strategy to capture growth at both the high and accessible ends of the luxury spectrum.

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Despite a sluggish 2024 due to weaker performance in China and the US, L’Oreal shares have risen roughly 11% so far this year, buoyed by strong demand for fragrances and make-up in the luxury segment. Monday’s announcement saw shares dip less than 1% in early Paris trading.

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The deal is also a win for Inflexion, which acquired Medik8 in 2021 and helped the brand scale internationally. Isaacs, who developed Medik8 based on his pharmacology background and passion for skincare innovation, will stay on the board following the acquisition.

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As L’Oreal bolsters its presence in Britain with a digitally savvy, science-backed skincare brand, the move underscores the growing value of affordable luxury — and the influence of social media in reshaping beauty brand strategies.

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