L'Oreal to Purchase NYX Cosmetics
French beauty giant L'Oreal has announced that it will acquire popular inexpensive cosmetics company NYX Cosmetics (pronounced "niks"). NYX is a younger skewing makeup line based out of Los Angeles that is known for its low prices, on trend colors and good quality cosmetics. The drugstore brand is quite popular with young women and sales have been surging.NYX was founded n 1999 by Toni Ko who wanted a line that had cutting edge colors and formulations but at a low price point. The company was named after the ancient Greek goddess who ruled the night. The company had net sales of $72 million in 2013, which is a nearly 50% increase from the year before. 2014 looks to have even higher sales figures, which made the company a very attractive takeover prospect.
Toni Ko, the Chairwoman of NYX, had this to say about the deal: "NYX has seen tremendous growth in the last decade and I have complete confidence that L'Oreal will remain true to its brand identity and mission, which is to provide high quality, innovative professional cosmetics for women around the world. We possess a shared commitment to creating best in class products and the NYX consumer stands to benefit enormously from L'Oreal's extensive marketing, distribution and R&D resources."
L'Oreal says that NYX will remain based in Los Angeles at its current headquarters and the leadership of the company is staying the same. NYX will now be part of L'Oreal's Consumer Products Division which includes other popular brands such as Maybelline NY, Kiehl's, Essie, Urban Decay and Clarisonic. The terms and sale price of the deal were not disclosed.
Posted on June 18, 2014