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Posted on Nov 26, 06:24PM | IBNS
L'Oreal, world's leading beauty company, on Monday announced the signing of an agreement with private equity firm Castanea Partners to acquire Urban Decay.
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.
The market for make-up specialist brands represents 44pc 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'Oreal 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," said Nicolas Hieronimus, President L'Oreal Luxe.
"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 Hieronimus.
"L'Oreal's strong innovation capabilities and presence in every channel of distribution will enable Urban Decay to reach its full potential in the marketplace," said 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.