In a joint statement, the French company said it saw Magic as the "ideal fit" for its existing business in China's fast growing beauty industry.
Magic Holdings, based in Guangzhou, is famous for its face masks. The company generated $150 million euros in revenues in 2012.
"Facial masks are one of China's beauty market's fastest growing areas with very promising development prospects. Magic's MG brand is one of China's leading brands in this category," the joint statement said.
L'Oreal, which has brands such as Garnier and Lancome under it, has 3,500 employees in China, a Research and Innovation centre in Shanghai and two plants in Suzhou and Yichang.
The deal needs approval from China's Ministry of Commerce before it can go ahead.
Image: © L'Oreal
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