L’Oreal to seizez IT Cosmetics in $1.2 billion deal

French cosmetics firm L’Oréal SA said Friday it would acquire U.S.-based IT Cosmetics in a cash deal worth $1.2 billion.

L’Oréal, home to brands including Lancôme, Garnier and Kiehl’s, will add IT Cosmetics’s stable of over 300 beauty products. For the 12 months ended in June, IT Cosmetics posted net sales of $182 million, a 56% rise compared with a year ago, according to L’Oréal. IT Cosmetics products are available on shopping channels including QVC and TSC, specialty retailers such as Ulta Salon Cosmetics & Fragrance Inc.’s stores and LVMH Moët Hennessy Louis Vuitton SE’s Sephora locations and the brand’s website.

After the completion of the deal, IT Cosmetics is slated to become part of L’Oréal’s Luxe division and will continue to operate out of its Jersey City, N.J., headquarters under its current leadership. The closing of the transaction is subject to regulatory approval.

L’Oréal registered first-quarter sales growth of only 1.7% as the strengthening euro curbed higher revenues in emerging markets.

But the company’s Luxe division — which includes brands such as Yves Saint Laurent, Ralph Lauren and Giorgio Armani — increased 4.4%, the biggest jump among its business divisions.

Source: MarketWatch