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L’Oreal is buying Urban Decay Cosmetics

Cosmetic giant L’Oreal is buying Urban Decay Cosmetics LLC. Industry experts estimate that L’Oréal has paid around $350 million for Urban Decay.

Urban Decay was founded in Los Angeles in 1996 and was purchased by the LVMH luxury group in 2000 before being sold on two years later to the Falic Group (owners of the Perry Ellis fragrance lines). In 2009, Urban Decay was acquired by private equity fund Castanea Partners. In 2011 Urban Decay had sales of $140 million.

Urban Decay will be a great addition to L’Oreal. While L’Oreal isn’t lacking consumers they are looking to tap into a younger market. I feel that if they stay true to the Urban Decay brand, consumers will continue to buy Urban Decay.

L’Oréal is the world’s largest cosmetics group, with a global collection of brands including Maybelline, Clarisonic and Lancôme. Annual sales exceed $26 billion. Adding Urban Decay will just add to their bottom line, smart move really.

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