PARIS Nov 26 French cosmetics maker L'Oreal
acquired U.S. make-up brand Urban Decay from private
equity firm Castanea Partners as part of an effort to reach more
upscale young consumers.
L'Oreal did not say how much it paid for California-based
Urban Decay, which was created in 1996 by make-up expert Wende
Zomnir and had sales of $130 million in its fiscal year ended
Liberum Capital analyst Pablo Zuanic welcomed the deal,
which he pegged at about $250-300 million or slightly more than
2 times sales.
Urban Decay is "exactly the type of brand L'Oreal needs to
beef up its make-up portfolio in the prestige channel," he said
in a note.
The market for specialist make-up brands represents 44
percent of the luxury cosmetics market in the United States.