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L’Oréal Outlines Plan for Artec

NEW YORK — L’Oréal USA is detailing its plans for Artec Systems Group, the Port Washington-based hair care company it acquired earlier this week. <br><br>As reported on Wednesday, L’Oréal purchased the 12-year-old company...

NEW YORK — L’Oréal USA is detailing its plans for Artec Systems Group, the Port Washington-based hair care company it acquired earlier this week.

This story first appeared in the August 23, 2002 issue of WWD.  Subscribe Today.

As reported on Wednesday, L’Oréal purchased the 12-year-old company for an undisclosed amount. Artec, which is sold in 20,000 U.S. salons, makes hair care, hair color and styling products under the Textureline, Purehair, Kiwi, Enamels and Spaline brands. Last year, Artec generated $38 million in net sales to distributors.

According to David Craggs, president, L’Oréal Professional Products Division, both of Artec’s founders, Leland Hirsch and Michael Mazzei, have resigned their posts with the company, but will stay on as consultants on a contractual basis. Mazzei’s Manhasset-based salon, Nubest & Co., will serve as a flagship salon for the brand.

Artec’s Port Washington office will be integrated with L’Oréal Professional in Manhattan. The new team for the Artec business will be substantially increased, Craggs said. “We will be interviewing and working with current employees to ascertain the new fit.” Artec employs 85 people.

L’Oréal USA, a $3 billion company with brands such as Redken, Matrix and L’Oréal Professional, says Artec will bring more balance to its product portfolio.

“The main reason for the acquisition is the development of the L’Oréal Professionnel brand. Prior to the acquisition, 98 percent of L’Oréal Professional sales were done in hair color. Now that we have acquired Artec, we have a branded portfolio with a strong hair care and styling business. This move consolidates our leadership position in the U.S. with a combined dollar share of 26 percent of salon sales,” Craggs said.

Artec was the first company to develop a color depositing shampoo, creating a new category — hair color maintenance — for the salon industry. Artec is also well-known for keeping its products in salons and out of mass channels. In addition, Artec believes in designing new products to help make managing the beauty business easier. Hirsch, who also serves as creative director of the company, last year gave his approval to Artec’s latest hair color introduction, Enamels, a premixed hair color system.