Tekin Acar, a prominent Turkish cosmetics retailer, has been acquired by France’s Sephora, with both companies applying to Turkey’s Competition Board for approval of the sale. Sephora acquires a significant foothold in the volatile Turkish market.
WHO: Tekin Acar founded the prominent cosmetics chain that bears his name in 1979 and has 80 stores across Turkey.
Founded in 1969, Sephora was acquired in 1997 by French multinational luxury goods conglomerate LVMH headquartered in Paris. Sephora is a leader in global prestige retail, innovation, and teaching and inspiring clients to play in a world of beauty. The retailer operates approximately 2,300 stores in 33 countries worldwide, with an expanding base of over 430 stores across the Americas.
WHY: The sale comes months after Tekin Acar told journalists that both the sector and his business were facing difficulties. Earlier this year import taxes on some cosmetics and restrictions on the products for which credit card payments can be taken in installments have had a negative impact on the retailer.
IN THEIR OWN WORDS: “Since many brands have closed up stores one by one, people don’t notice it,” said Acar told Reuters in January. “In my 46-year career, it’s the first time I’m having trouble paying my rent, utilities, and salaries. I’ve put all my income from other businesses into this, I’ve increased capital but it isn’t enough. I’m not George Soros, this is it for me. We have never faced such uncertain times. We don’t even know which new regulation will come out next. No investor will pour money into a country where anything can happen at any time. I am not just talking about the foreign exchange pressure or high rents.”
- An application has been made to the Competition Board regarding Tekin Acar’s purchase by Sephora Cosmetics. Upon the approval of the board the sale will be completed.
- Tekin Acar has nearly 80 stores throughout Turkey.
Read the full article in GCI.