L’Oréal USA, the largest subsidiary of the cosmetics leader, has signed a definitive agreement to acquireCarol’s Daughter, a multi-cultural beauty brand headquartered in New York City. Created by Lisa Price in 1993, the brand caters to a diverse, rapidly growing market and has established a loyal consumer following across the USA.

According to market research firm Kline & Company, sales of multicultural beauty products would post a 3.7% increase in 2014, outpacing the growth of the overall U.S. market for cosmetics and toiletries. This momentum is expected to continue due to natural growth of the multicultural population. The proportion of women members of the so-called “ethnic minorities” - such as African Americans, Asians, Hispanics, and mixed-race people - is increasingly important in the United States and it is expected to overcome the 50% mark around 2040.

For the 12 months ending September 30, 2014, Carol’s Daughter had net sales of US $27 million. The brand’s products are available at specialty beauty stores, mass retailers, on HSN, through e-commerce and at Carol’s Daughter branded stores in New York City.

New division

This acquisition will enable L’Oréal USA, who already owns Soft-Sheen Carson, to build a new dedicated multi-cultural beauty division as part of their Consumer Products business. “And strengthen the company’s position in this dynamic market,” said the company’s President and CEO, Frédéric Rozé.

Carol’s Daughter will continue to operate out of their New York City headquarters under the brand’s current leadership team.