L'Oreal SA, the world's largest cosmetics maker, signed an agreement to acquire the makeup and skin care brand Yue-Sai, L'Oreal said on its Website.

　　The deal will expand L'Oreal's sales network in China by helping it reach 800 department stores in China. The France-based firm acquired the brand from the United States-based Coty Inc, a global cosmetics and skin care products producer. The purchasing price was not disclosed.

　　Yue-Sai Kan, a Chinese American television celebrity, created the high-end cosmetics brand in 1992. In 1996, she sold controlling stake to a division under Coty.

　　Products under the brand of Yue-Sai have been designed exclusively for Asian women. It is sold in 800 department stores located in 240 cities across the country.

　　The purchase of Yue-Sai reveals L'Oreal's ambition to further expand its business in China. The deal was its second purchase of a major brand on Chinese market - it acquired Mininurse last month to take a bite into the country's middle-end skin care market.

　　"This new acquisition confirms our determination to step up the pace of our growth in this strategic market," said Lindsay Owen-Jones, chairman and chief executive officer of L'Oreal in a press release.

　　"Yue-Sai, a symbolic brand for the Chinese woman of today, will naturally slot into L'Oreal's portfolio," said Paolo Gasparrini, general manager of L'Oreal China. "The brand strengthens the group's leadership in makeup and facial skin care.

　　The group's technology and R&D will enable Yue-Sai to win new market share, he added.

　　The acquisition also includes a manufacturing plant in Shanghai. The factory will increase L'Oreal's production capacities, ensuring rapid growth for its brands in Asia, said the French cosmetics giant.

　　L'Oreal's sales in China in 2003 soared to 1.5 billion yuan (US$180 million), a year-on-year increase of 69.3 percent. At present, China is L'Oreal's fastest growing market.

　　L'Oreal has been operating in China since 1997. Now its core brands including Maybelline, Lancome and Biotherm, are all available in the country.

　　Launched in 1992, Mininurse is one of the major domestic skin care brands on the Chinese mainland. It has grabbed a 5 percent market share here.

　　"After taking over Mininurse, L'Oreal's competitiveness is greatly enhanced," said You Qichen, an official with the China Association of Fragrance Flavor & Cosmetic Industry.