L'Oreal Acquires Urban Decay
L'Oréal signed an agreement with Castanea Partners to acquire Urban Decay.
Urban Decay was created in 1996 by make-up expert Wende Zomnir. The brand has built it's repuation on a "beauty with an edge" concept and has been very popular among fashion forward consumers.
"Urban Decay will beautifully complement L'Oréal Luxe's portfolio of iconic brands. It is the make-up specialist we needed to fully satisfy young women in search of playful colors and inspiration in selective distribution, at an accessible price point. It is totally additional to our existing propositions and as such it will contribute significantly to the growth of the Division in the years to come," said Nicolas Hieronimus, President L'Oréal Luxe.
Frédéric Rozé CEO L'Oréal USA said, "Thanks to the acquisition of Urban Decay, the Group will strengthen its position in two very dynamic distribution channels in the USA, ie assisted self-service and e-commerce. We look forward to this new and exciting opportunity." In the US, Urban Decay will report to Carol Hamilton, President of L'Oréal Luxe USA.
"L'Oréal's strong innovation capabilities and presence in every channel of distribution will enable Urban Decay to reach its full potential in the marketplace," added Tim Warner, General Manager, Urban Decay. "Together, we have great ambitions for the future."
The closing is subject to regulatory approval which is expected by the end of the year.
L'Oréal, the world's leading beauty company, has catered to all forms of beauty in the world for over 100 years and has built an unrivalled portfolio of 27 international, diverse and complementary brands. With sales amounting to 20.3 billion euros in 2011, L'Oréal employs 68,900 people worldwide. Regarding sustainable development, Corporate Knights, a Global Responsible Investment Network, has selected L'Oréal for its 2012 ranking of the Global 100 Most Sustainable Corporations in the World. L'Oréal has received this distinction for the 5th consecutive year. www.loreal.com
L'Oréal USA, headquartered in New York City, with 2011 sales of over $5.1 billion and 9,800 employees, is a wholly-owned subsidiary of L'Oréal SA, the world's leading beauty company. In addition to corporate headquarters in New York, L'Oréal USA has Research and Innovation, Manufacturing and Distribution facilities across seven states, including New Jersey, Kentucky, Arkansas, Illinois, Ohio, Texas and Washington. L'Oréal's impressive portfolio of brands includes Lancôme, Giorgio Armani Beauty, Yves Saint Laurent Beauté, Viktor & Rolf, Diesel, Cacharel, Clarisonic, L'Oréal Paris, Garnier, Vichy, La Roche-Posay, L'Oréal Professionnel, Kérastase and Shu Uemura Art of Hair, Maybelline New York, Soft-Sheen.Carson, Kiehl's Since 1851, Ralph Lauren Fragrances, essie Cosmetics, Redken 5th Avenue NYC, Matrix, Mizani, Pureology, SkinCeuticals and Dermablend. For more information visit www.lorealusa.com.
Castanea Partners is a private equity firm founded by operating executives and private equity veterans. Castanea invests between $15M to $75M of equity in companies within specifically targeted industry sectors where the firm has proven investment and operating expertise. Castanea is principally focused on investing in dynamic consumer brands and marketing services companies that enable such brands to connect with their customers. Castanea is currently investing from its third fund, a $500 million fund that targets companies with enterprise values up to $250 million.