Carol’s Daughter, a store and web-based retailer of hair and skin products geared toward African-American women, is slated to become a part of L’Oreal USA.
L’Oreal USA, a part of skin care and cosmetics manufacturer L’Oreal Group and No. 289 in the Internet Retailer 2014 Top 500 Guide, announced this week it had purchased Carol’s Daughter.
Carol’s Daughter, No. 694 in the Internet Retailer 2014 Second 500 Guide, generated Internet Retailer-estimated web sales of $10.6 million in 2013. Overall, Carol’s Daughter, which was launched by founder and CEO Lisa Price in 1993 to sell what it describes as “natural” skin care and beauty products, had total annual sales of $27 million, L’Oreal says.
Terms of the deal, including the purchase price, weren’t disclosed. L’Oreal is making the acquisition to expand its product base to appeal to cosmetics shoppers from a variety of ethnic groups. “This acquisition will enable L’Oreal USA to build a new dedicated multi-cultural beauty division as part of our consumer products business, and strengthen the company’s position in this dynamic market,” says L’Oreal USA president and CEO Frédéric Rozé.
The deal is subject to certain unspecified closing conditions, and L’Oreal didn’t say when it is expected to close. Carol’s Daughter will continue to operate CarolsDaughter.com and its store in Brooklyn, N.Y. Carol’s Daughter products also are distributed by such other retailers as HSN Inc. and Ulta, Salon & Fragrance Inc., Nos. 26 and 227, respectively, in the Internet Retailer 2014 Top 500 Guide.
L’Oreal USA, the biggest business unit of L’Oreal, manufactures and sells 28 well-known beauty brands, including Clarisonic, Essie Cosmetics, Garnier, Giorgio Armani Beauty, Kérastase, Kiehl’s, Lancôme, L’Oreal Paris, Maybelline New York, Redken and others.
It’s the second acquisition in the past month for L’Oreal USA, which is seeking to diversify its product lines and customer base. In September, L’Oreal USA purchased NYX Cosmetics in Los Angeles for an undisclosed sum. NYX Cosmetics is a manufacturer of professional color cosmetics such as The Curve eyeliner and Butterlip gloss. The company generates annual sales of about $93 million and sells online at NYXCosmetics.com. “NYX has become one of the fastest-growing color cosmetics brands in the United States, reaching an expanding segment of socially connected consumers,” Rozé says.
Source: internetretailer.com
