L'Oréal has signed a deal to acquire Los Angeles based NYX Cosmetics. Private equity company HCP & Company has agreed to sell its investment in the colour cosmetics brand to L'Oréal; the exact terms of the transaction have not been disclosed.
NYX is one of the fastest growing colour cosmetics brands in the US with projected 2014 revenues expected to surpass $100m. Since HCP's initial investment, the company's revenue has increased more than five times while significantly expanding its shelf presence and distribution. The brand is currently distributed through professional beauty stores, specialty cosmetics stores, e-commerce and some NYX branded stores.
It was founded in 1999 by entrepreneur Toni Ko, achieving its prominence through social media channels such as Instagram and YouTube.
“NYX has seen tremendous growth in the last decade and I have complete confidence that L'Oréal will remain true to its brand identity and mission, which is to provide high quality, innovative professional cosmetics for women around the world," Ko said. "We possess a shared commitment to creating best in class products and the NYX consumer stands to benefit enormously from L’Oréal’s extensive marketing, distribution and R&D resources.”
Frédéric Rozé, President and CEO of L’Oréal USA, added: “NYX is a dynamic company that has done a tremendous job of harnessing the power of social media, digital marketing and multi-channel distribution. Both L’Oréal and NYX share a passion for innovation and a confidence in the strength and vitality of the colour cosmetics market.”
NYX Cosmetics will continue to operate out of its Los Angeles headquarters under the brand’s current leadership team. The brand will become part of the Consumer Products Division of L’Oréal. L’Oréal’s portfolio of American brands also includes Maybelline NY, Kiehl’s, Essie, Urban Decay and Clarisonic.
The finalisation of the deal is subject to the usual regulatory approvals and other customary conditions.
