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L’Oréal to Purchase NYX Cosmetics
Posted: June 18, 2014
L’Oréal announced the signing of a definitive agreement to acquire NYX Cosmetics. Headquartered in Los Angeles, NYX was created in 1999 by entrepreneur Toni Ko, who had a vision for creating a line of high-quality, on-trend professional color cosmetics at attractive prices. Rooted in professional makeup artistry and driven by an impactful social media and grassroots marketing strategy, NYX has become one of the fastest-growing color cosmetics brands in the U.S., reaching an expanding segment of socially connected consumers. In 2013, NYX reported net sales of $72 million, a growth of 46% vs. 2012. Sales continued to record strong growth this year, amounting to %93 million for the last 12 months ended May 31, 2014, up 57% over the comparable year-over-year period.
NYX offers a broad catalog of products that includes everyday basics, on-trend shades, special occasion makeup, and cult favorites like the one of a kind The Curve eyeliner and Butter lip gloss line. The brand is currently distributed through professional beauty stores, specialty cosmetics stores, other retailers, e-commerce and some NYX branded stores.
“NYX is a dynamic company that has done a tremendous job of harnessing the power of social media, digital marketing and multi-channel distribution,” said Frédéric Rozé, president and CEO of L’Oréal USA. “Both L’Oréal and NYX share a passion for innovation and a confidence in the strength and vitality of the color cosmetics market.”
NYX Cosmetics will continue to operate out of its Los Angeles headquarters under the brand’s current leadership team. The brand will become part of the consumer products division of L’Oréal, and this acquisition further enhances L’Oréal’s roster of American brands, which includes Maybelline NY, Kiehl’s, Essie, Urban Decay and Clarisonic.
“NYX has seen tremendous growth in the last decade and I have complete confidence that L'Oréal will remain true to its brand identity and mission, which is to provide high quality, innovative professional cosmetics for women around the world," said Ko, chairwoman and founder of NYX Cosmetics. "We possess a shared commitment to creating best in class products, and the NYX consumer stands to benefit enormously from L’Oréal’s extensive marketing, distribution and R&D resources.”
Private equity firm HCP & Company, which is selling its interest in NYX Cosmetics, shared, "We met Toni when NYX was still an emerging brand and in partnership with her, we helped to build a world class management team, enhance customer relationships and support the growth through strategic focus," said HCP's managing partner and NYX board member Carlos Signoret. And "HCP has been an amazing partner to work with in growing the business. They have added tremendous value, and I would recommend this team to any entrepreneur or business owner," said Ko.
"The entire NYX team has done a tremendous job of rapidly growing the company while remaining true to their brand and its values. We are fortunate to have worked with such a passionate and dedicated team and are confident they will thrive with their new partners," said Jim Bland, principal from HCP and NYX board member. "HCP was incredibly supportive of our team and encouraged us to invest in our vision of becoming one of the top cosmetics brands in the world," added HCP CEO Scott Friedman.
The closing is subject to the usual regulatory approvals and other customary conditions.