The French cosmetics giant has signed a definitive agreement to acquire IT Cosmetics, one of the fastest growing prestige beauty brands in the United States for a cash purchase price of 1.2 billion US dollars. This is the biggest acquisition for L’Oréal, since the acquisition of Yves Saint Laurent Beauté in 2008 for 1.15 billion US dollars.
Founded in 2008 by Jamie Kern Lima and Paulo Lima and co-owned by TSG Consumer Partners, IT Cosmetics was developed with leading plastic surgeons to provide women with innovative, problem-solving skincare and makeup products.
IT Cosmetics offers more than 300 high-performance beauty products focusing on color cosmetics, skincare, brushes and tools. IT Cosmetics’ multi-channel distribution model includes select television shopping channels including QVC and TSC, specialty stores including ULTA and Sephora, and the brand’s website. For the 12 months ending June, 2016, IT Cosmetics had net sales of 182 million US dollars, up by 56%.
"IT Cosmetics shares L’Oréal’s passion for product innovation and our belief that offering beauty for all is a deeply purposeful mission," said Frédéric Rozé, President and CEO of L’Oréal USA. "The brand has earned the devotion of its highly engaged consumers and we see potential for significant growth in the years to come."
IT Cosmetics will become part of the Luxe Division of L’Oréal.
"IT Cosmetics will perfectly complement the L’Oréal Luxe’s brand portfolio to satisfy the rising demand for make-up as well as hybrid skincare. We are happy to welcome IT Cosmetics to the L’Oréal dream team which includes other great beauty brands such as Lancôme, Kiehl’s, Yves Saint Laurent, Armani and Urban Decay," said Nicolas Hieronimus, President L’Oréal Selective Divisions.
The brand will continue to operate out of its Jersey City, New Jersey headquarters under the current leadership team.