L’Oreal Group buys U.S. based NYX Cosmetics
L’Oreal SA, the world’s largest cosmetics group, recently acquired U.S. based NYX Cosmetics for an undisclosed price, bolstering its makeup offer in North America where its consumer-products unit has been sluggish.
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’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.
Since January, L’Oreal has been making strategic acquisitions such as Chinese facial- mask maker Magic Holdings International Ltd. and spa brands Decleor and Carita.
“The U.S. market has not really improved in recent months,” L’Oreal Chief Executive and Chairman Jean-Paul Agon told Reuters, following the annoucement of the new acquisition in the U.S.
Agon said he was not worried by the trend which would eventually reverse itself but noted it was surprising in light of the positive data emerging from other industries and sectors in the United States such as real estate and cars.
Highlighting the split between those with high earnings who continued to spend and “middle America who is suffering,” Agon estimated the annual sales growth of the U.S. luxury cosmetics market at around 4 percent.