PARIS, France — L’Oreal SA, the world’s largest cosmetics maker, agreed to acquire NYX Cosmetics for an undisclosed price, bolstering its makeup offer in North America where its consumer-products unit has faltered.
NYX Cosmetics will continue to operate from its Los Angeles headquarters under the brand’s current leadership team, Paris- based L’Oreal said today in a statement.
NYX, founded in 1999, sells $6 blush and $10 eyeliner in more than 70 countries, according to its website. The competitor to Estee Lauder Cos.’s MAC Cosmetics says it’s one of the fastest-growing cosmetics company in the U.S. Sales in the 12 months through May rose 57 percent to $93 million, L’Oreal said.
The personal-care market is consolidating as companies from Germany’s Henkel AG to Japan’s Kose Corp. buy niche brands to widen their offers. Since January, L’Oreal has acquired facial- mask maker Magic Holdings International Ltd. and spa brands Decleor and Carita. Including the buyback of 8 percent of its stock held by Nestle SA, slated to close this month, L’Oreal will have spent more than $5 billion on deals this year.
Sales at L’Oreal’s consumer-products division fell in North America in the first quarter, contributing to the company’s slowest quarterly growth since the recession. Regional sales at the unit, which includes Garnier shampoo, will return to growth this quarter and accelerate through 2014, L’Oreal has said.
The company’s other specialist makeup brands include Urban Decay, acquired in 2012, and Maybelline New York.
By Andrew Roberts; Editors: Celeste Perri, Paul Jarvis