L’Oréal signs deal with Castanea Partners to acquire cosmetics brand Urban Decay

Cosmetics manufacturer L’Oréal signed an agreement with US-based private equity fund Castanea Partners to acquire beauty brand Urban Decay.

Terms of the deal, which are expected to close by the end of the year, were not disclosed.

Urban Decay, which is sold in beauty retailers Ulta and Sephora, recorded a net sales of $130m in the fiscal year ended in June 2012.

L’Oréal Luxe president Nicolas Hieronimus said Urban Decay will join the firm’s portfolio of unique brands.

" It is the makeup specialist we needed to fully satisfy young women in search of playful colors and inspiration in selective distribution, at an accessible price point. 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," Hieronimus added.

Urban Decay, based in Newport Beach California, was founded by make-up artist Wende Zomnir in 1996.

The brand has built a reputation based on the concept of ‘beauty with an edge’ and offers products in the eye category such as the Naked Palette and recently launched its new foundation, the Naked Skin weightless liquid make-up.

According to the company, the market for make-up specialist brands represents 44% of the luxury make-up market in the US.

L’Oréal Group is a France-based cosmetics manufacturer whose portfolio includes hair care, skin care, sun protection, make-up and perfumes.

The company is active in the dermatological, tissue engineering and pharmaceutical fields and also a nanotechnology patent-holder in the US.

Image: L’Oréal acqusition of Urban Decay will aid in attracting youth consumers by the fashion-forward image of the brand. Photo: Tangopaso (talk).