Nyx Cosmetics may soon be a L’Oreal Brand, joining other large brands including Urban Decay and the Body Shop. Apparently Nyx put themselves up for sale in March.
NYX Cosmetics May Soon Be a L’Oreal Brand
Quote from the article here
“The indie mass-market color cosmetics brand is close to finalizing a deal with beauty giant L’Oréal, said industry sources. While nothing has been signed, a potential deal could come as early as the end of the month. NYX, which generates wholesale sales north of $100 million, could fetch as high as $500 million, suggested financial observers.
Another frontrunner for the brand is said to include TPG Growth, which earlier this year purchased the value-price mass color brand E.l.f. Cosmetics from company founders and the private equity fund TSG Consumer Partners.
The sale of NYX would accelerate the mergers and acquisition market in beauty, which has been gaining steam after a lackluster 2012. Since January, L’Oréal has acquired Chinese facial masks-maker Magic Holdings International Ltd., TPG Growth bought a majority stake in E.l.f., and Japan’s Kosé Corp. acquired a 93.5 percent stake in Tarte Cosmetics from founder Maureen Kelly and Encore Consumer Capital. This month alone, TSG sold off a trio of professional hair-care brands — Sexy Hair, Alterna and Kenra — to Henkel AG, and its clinical skin-care brand Perricone MD to Lion Capital.”
There’s no reason to believe that Nyx Cosmetics wouldn’t remain cruelty free. Urban Decay and the Body Shop are both still cruelty free, even though they are owned by L’Oreal. Additionally, Urban Decay is Leaping Bunny Certified.
With all of the great products that Nyx has released recently, I can certainly understand why L’Oreal would want to acquire the brand.
Update 6/18: Looks like L’Oreal did purchase Nyx. Now to see what happens!
What do you think of the possibility of L’Oreal purchasing Nyx Cosmetics?