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L’Oreal Reaches Deal to Acquire Carol’s Daughter

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

What people are saying

5 thoughts on “L’Oreal Reaches Deal to Acquire Carol’s Daughter

  1. Jay Contreras says:

    Can WE KEEP ANYTHING black-owned? Damn. I know this sistah has worked hard but another instance where we do the hard work & some white-owned company comes along and makes all the really big $ off of her franchise. Either black people will continue buy & now AGAIN make whites rich off of peddling our culture OR black people will abandon it & then her products are gone. So we have a choice between paying white people to appropriate our culture AGAIN or abandoning it & then it not being there. Ugh.

  2. Jay Contreras says:

    Thank you, brotha. My sentiments exactly. It will be interesting to see whether black women will continue to patronize or whether they will buycott & allow her company to go belly up.

  3. Michele Robson Steinmann says:

    You're coming from an honorable place, but I disagree, Black Jesus'. Black owned business or not, the whole reason behind building a business is so that you can make it profitable enough to sell it to the highest bidder. Right? Unless your goals are sentimental, your plan shouldn't be to run your business yourself until you're old. Your plan should be: build it, make it profitable enough to sell, retire, then you spend the rest of your life really living. You can "give back" once the dust settles.

    Its not a black entrepreneur's fault the highest bidders aren't other black people so I don't expect her to postpone her retirement while she waits to be approached by an interested black corporation who can also afford to outbid "whitey."

    We are no longer living in the times where we can expect the same kind of communal hand up that happened when yesterday's black actors paved the way for today's black actors. Just because that was a feel good moment that worked in the past, it doesn't mean its relevant in today's terms of market share and profitability.

    America's financial markets are ruled by GOP principals, not Liberal ones. There's no such thing as creating an idealized form of the "hand up" when it comes to selling businesses. We can't make an idealized, scratch my black back and I'll scratch yours, black Barbie & Ken, H.B.C., Tuskegee Airmen, B.E.T. version of the financial markets and expect anything real to come of it.

    Its been time to get hip to the game so we can play for real. Kudos to the Carol's Daughter C.E.O. She did it right.

  4. Try Ashley Lauren Natural Products based in Chicago, IL. They are made by a black woman and sold in Whole Foods Market and Doctors office.. The line was founded several years ago to help black women grow hair. The products are made using the finest ingredients. The company will never be sold or diluted.

  5. I am shocked by your response Michelle. Starting a business so you can build it up to sell is the worst idea ever. Look at the new billion dollar tech companies, a lot of them were offered millions to sell but stuck with their projects and became powerful billionaires. If you read a lot of interviews in magazines and business websites you will see that most entrepreneurs give advice not to start a business that you are not passionate about. If you have an exit plan then you are not passionate about it. Going into business for the sole purpose of financial gain is just bad. In fact greed and financial gain is what led to this companies bankruptcy. For years carol's daughter has been getting money from white owned businesses and practicing rapid expansion. Basically white owned corporations were able to legally pry the company from black ownership by fooling Lisa. She got money out of it but at the cost of losing her power. The reason we need black businesses is because of prejudice in the hiring process. Educated black people have a higher unemployment rate than their educated counterparts. Lower skilled black folks are also being replaced by the influx of south American immigrants and illegal workers. There are studies showing a person of color with the proper credentials is less likely to get hired than a white person with the same credentials. Carol's daughter has a big chance of turning into Aunt Jemima and Uncle Ben's. Two white owned and operated brands that use a black face to transfer wealth from the black community to the white and rich community. To brush off the importance of black owned business is to ignore the economic theory of the cause of crime and poor living conditions in the black community. It is time to get hip to the game but first you need to learn the game. Build black business and hire black people.

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