L'Oréal to buy specialist makeup brand Urban Decay Cosmetics
26 Nov 2012
L'Oréal, the world's largest cosmetics and beauty company today said that it will buy privately owned Urban Decay Cosmetics, in order to expand its portfolio in specialist makeup brands.
The Paris-based beauty and skin-care giant is buying Urban Decay from private equity firm Castanea Partners. L'Oreal did not reveal the financial terms of he deal, but media reports suggested that L'Oréal is paying between $300 million and $400 million.
Urban Decay was bought by French conglomerate Moet-Hennessy Louis Vuitton in 2000, which sold it in 2002 to the Falic Fashion Group, a wholly-owned subsidiary of Duty Free Americas, Inc. In 2009 it was acquired by Castanea Partners.
Founded in 1996 by make-up expert Wende Zomnir, Newport Beach, California-based Urban Decay is the largest independently-owned colour cosmetic company in the US.
It has a line of products in the eye category such as the Naked Palette and recently launched Naked Skin liquid make-up.
Urban Decay is popular among the youth who are attracted by the fashion-forward image of the brand, which is primarily sold in mid to high-end beauty stores, such as Ulta, Sephora, and recently Macy's.