L’Oréal has announced the acquisition of IT Cosmetics in an all-cash deal worth $1.2bn. The deal is aimed at strengthening the French group’s Luxe division.
IT Cosmetics makes more than 300 beauty products in the colour cosmetics, brushes, tools, and skin care segments. Founded by Jamie Kern Lima, the brand generated sales of $182m in the fiscal year ending June 2016, with its products being sold via TV shopping channels, speciality retailers such as Sephora and Ulta, as well as its own website.
IT Cosmetics, which will become part of L’Oréal’s Luxe division, will continue to be headquartered in Jersey City. Lima, her husband and the existing leadership team will remain involved with the brand.
L’Oréal noted: “IT Cosmetics will perfectly complement the L’Oréal Luxe’s brand portfolio to satisfy the rising demand for make-up as well as hybrid skincare. The brand has earned the devotion of its highly engaged consumers and we see potential for significant growth in the years to come.”
- Key is the supplementing effect on the L’Oreal portfolio …along with an obvious change in competitive environment
- Time for NAMs to reassess their relative competitive appeal?