L’Oreal To Buy US Cosmetics Company For $1.2B
Luxury cosmetics brand L’Oreal announced plans to acquire US-based IT Cosmetics for $1.2B.
After the all-cash deal closes, IT Cosmetics will become part of L’Oreal’s Luxe division and will maintain operations at its New Jersey headquarters, the Wall Street Journal reports. IT Cosmetics has more than 300 products—all of which can be purchased at retailers Ulta Salon Cosmetics and on shopping channels like QVC and TSC. The makeup provider posted $182M in profits in June, a 56% jump compared to the year-ago quarter.
Beauty and cosmetics companies are faring well amid tumultuous times for the retail industry, and many big-name retailers like Ulta and Sephora continue to expand their footprint. L’Oreal’s Luxe division includes brands such as Ralph Lauren and Giorgio Armani. The French company posted a 1.7% boost in sales in Q1, and its Luxe arm jumped by 4.4%—the largest increase of all its divisions. [WSJ]
