L’Oreal agrees to acquire IT Cosmetics for $1.2bn in cash

French cosmetics firm L’Oreal has entered an agreement to buy US-based makeup and skincare brand, IT Cosmetics, for $1.2bn in an all-cash deal.

TSG Consumer Partners acquired a minority interest of IT Cosmetics in 2012 from founders Jamie Kern Lima and Paulo Lima.

IT Cosmetics develops clinically proven, problem-solving makeup and skincare products, which are based on anti-ageing technologies and high-performance pro-skin components to offer beauty solutions.

Lima said: “Partnering with TSG was one of the best decisions we made in our journey and their strategic support these past few years, along with their unwavering encouragement of Paulo and me to pursue the vision we have for this company, has been invaluable.

“As we gear up for this next chapter in our company’s story, I know that TSG’s mark will prove to be indelible.”

The potential transaction is subject to customary closing conditions and regulatory approval.

On completion of the deal, IT Cosmetics will become a part of L’Oréal’s Luxe division, which includes brands such as Yves Saint Laurent, Ralph Lauren and Giorgio Armani.

The acquisition will add more than 300 beauty products of IT Cosmetics to L’Oreal, which is home to brands, including Lancôme, Garnier and Kiehl’s.

Goldman, Sachs & Co, Piper Jaffray & Co, and Financo served as financial advisors for the deal while Sidley Austin acted as the legal counsel.

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Image: TSG to sell IT Cosmetics to L’Oreal. Photo: courtesy of TSG Consumer Partners, LLC.