L’Oréal has continued its buying spree, adding the makeup artistry brand NYX Cosmetics to the fold.
The beauty firm on Tuesday signed a definitive agreement to acquire NYX. The terms of the deal were not disclosed, but industry sources estimate that L’Oréal may have paid nearly $500 million for the mass-market cosmetics brand. News of the deal confirms a report that appeared in WWD on June 12.
NYX, which was founded in 1999 by Toni Ko, has garnered quite a bit of attention in recent years for its social media prowess and meteoric sales growth. The brand’s sales for the 12-month period ended May 31 surged 57 percent to $93 million. The double-digit growth was on top of a stellar performance in 2013, when sales gained 46 percent to $72 million.
NYX, which is often described as the “MAC of mass,” is sold in mass and specialty stores, such as CVS Pharmacy, Target and Ulta.
“NYX is a dynamic company that has done a tremendous job of harnessing the power of social media, digital marketing and multichannel distribution,” stated Frédéric Rozé, president and chief executive officer 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.”
The brand will become part of the mass-orientated Consumer Products Division of L’Oréal, which also houses L’Oréal Paris, Maybelline New York, Garnier, SoftSheen-Carson and Essie.
NYX will continue to operate out of its Los Angeles headquarters under its current management team, which is led by ceo Scott Friedman.
L’Oréal has been one of the most active beauty firms on the mergers and acquisitions front in recent years, and has shown an interest in investing in brands at various stages of their life cycle.
In April alone, L’Oréal completed the acquisition of Magic Holdings International Ltd., a maker of Chinese facial masks, and the purchase of Decléor and Carita from Shiseido Co. Ltd.
The French beauty firm also has a fondness for edgy brands with a track record for strong social media engagement. For instance, in 2012, L’Oréal purchased Urban Decay from private equity firm Castanea Partners for an estimated $350 million. The brand has flourished, driven in part by the success of its Naked eye-shadow palettes. Last year, L’Oréal launched a color cosmetics brand with YouTube sensation and makeup vlogger Michelle Phan called EM, which the company developed from scratch.
NYX, for its part, has amassed more than 730,000 followers on Instagram, more than 226,000 Twitter followers and north of 36,000 YouTube subscribers.
“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,” stated Ko, chairman and founder of NYX, a Greek word for “goddess of the night.”
The deal’s closing is subject to regulatory approvals and conditions. Piper Jaffray served as the financial adviser to NYX.
From overseeing America’s fastest-growing speciality retailers to codifying cool, WWD talked to the women who are leading the way for the future of beauty. Check out our Instagram Stories to see how these women built today and are creating tomorrow. (📸: @hannah_khymych) #wwdbeauty
For @laperlalingerie's spring 2018 show, the brand chose to host their event at @thevenetianmacao. With Chinese megastars @bingbing_fan and @hubing in attendance, La Perla debuted a rock ‘n’ roll-inspired collection. The show marked the start of Sands Macao Fashion Week, which runs from October 19 to 24 — the city’s first such event. Pictured here are models backstage with glimmering eyes. #wwdfashion (📷: Cheuk-Yin To)
Trending for spring 2018: top stitch design. Gone are the days of stitch just for seams — designers are using the once-minimal detail to create strong decorative elements. (📷: Paola Testa; Styled by @andrew_shang) #wwdfashion
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)