L'Oréal to Buy U.S. Cosmetics Maker -- WSJ
July 23 2016 - 2:03AM
Dow Jones News
By Ezequiel Minaya
French cosmetics firm L'Oréal SA on Friday said it would acquire
U.S.-based IT Cosmetics in a cash deal worth $1.2 billion.
L'Oréal, home to brands including Lancôme, Garnier and Kiehl's,
will add IT Cosmetics's stable of over 300 beauty products. For the
12 months ended in June, IT Cosmetics posted net sales of $182
million, a 56% rise compared with a year ago, according to L'Oréal.
IT Cosmetics products are available on shopping channels including
QVC and TSC, specialty retailers such as Ulta Salon Cosmetics &
Fragrance Inc.'s stores and LVMH Moët Hennessy Louis Vuitton SE's
Sephora locations and the brand's website.
After the completion of the deal, IT Cosmetics is slated to
become part of L'Oréal's Luxe division and will continue to operate
out of its Jersey City, N.J., headquarters under its current
leadership. The closing of the transaction is subject to regulatory
approval.
L'Oréal registered first-quarter sales growth of only 1.7% as
the strengthening euro curbed higher revenues in emerging
markets.
But the company's Luxe division -- which includes brands such as
Yves Saint Laurent, Ralph Lauren and Giorgio Armani -- increased
4.4%, the biggest jump among its business divisions.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
July 23, 2016 02:48 ET (06:48 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.