Nov 26, 2012
L'Oréal signs an agreement to acquire Urban Decay
Nov 26, 2012
Based in Newport Beach California, Urban Decay, created in 1996 by make-up expert Wende Zomnir, has built a reputation based on the concept of "beauty with an edge" and values of femininity and irreverence. The line has star products in the eye category such as the Naked Palette and recently successfully launched its new foundation, the Naked Skin weightless liquid make-up. Urban Decay is popular among the youthful highly-involved cutting-edge consumers who are attracted by the fashion-forward image of the brand. The market for make-up specialist brands represents 44% of the luxury make-up market in the US.
In the fiscal year ended in June 2012, Urban Decay recorded net sales of 130 million US dollars.
"Urban Decay will beautifully complement L'Oréal Luxe's portfolio of iconic brands. It is the make-up specialist we needed to fully satisfy young women in search of playful colors 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," said Nicolas Hieronimus, President L'Oréal Luxe.
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.
Frédéric Rozé CEO L'Oréal USA said, "Thanks to the acquisition of Urban Decay, the Group will strengthen its position in two very dynamic distribution channels in the USA, ie 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," added Tim Warner, General Manager, Urban Decay. "Together, we have great ambitions for the future."
The closing is subject to regulatory approval which is expected by the end of the year.
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