 |
“Urban Decay…will contribute significantly to the growth of the Division in the years to come.“ |
Nicolas Hiéronimus President L’Oréal Luxe |
INTERNATIONAL. L’Oréal has today announced the signing of an agreement with Castanea Partners to acquire Urban Decay. The closing is subject to regulatory approval which is expected by the end of the year.
Based in Newport Beach California, Urban Decay was created in 1996 by make-up expert Wende Zomnir. The specialty brand is known for beauty with an edge, and values of “femininity and irreverence”, according to L’Oréal. It is popular among young consumers who are attracted by its fashion-forward image.
Specialist make-up brands represent 44% of the luxury make-up market in the US. In the fiscal year ended June 2012, Urban Decay recorded net sales of US$130 million.
“Urban Decay will beautifully complement L’Oréal Luxe’s portfolio of iconic brands,” noted President L’Oréal Luxe Nicolas Hiéronimus. “It is the make-up specialist we needed to fully satisfy young women in search of playful colours 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.”
Urban Decay is distributed in the key assisted self-service channel which includes, among others, Ulta and Sephora. It is one of the fastest-growing segments in the US luxury retail universe. Urban Decay is also strong in e-commerce, with www.urbandecay.com and www.sephora.com.
L’Oréal USA CEO Frédéric Rozé added: “Thanks to the acquisition of Urban Decay, the Group will strengthen its position in two very dynamic distribution channels in the US, i.e. 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,” concluded Urban Decay General Manager Tim Warner. “Together, we have great ambitions for the future.”
[houseAd5]
