L’Oreal SA will purchase IT Cosmetics for a Record $1.2 billion in one of its biggest acquisitions in eight years. Through this acquisition, the firm will add over 300 makeup and skin-care products to its inventory. IT Cosmetics funded by TSG Consumer Partners, will fall under L’Oreal’s Luxe Division. IT Cosmetics will retain its operation in New Jersey City, where its main offices are headquartered.
Long-term growth plan
The new acquisition is part of L’Oreal’s growth plan as the firm has started to experience modest growth in some parts of Latin America and Asia. The fashion giant was co-founded back in 2008 by a beauty-pageant winner and former television news presenter. In a recent official statement to its customers, IT Cosmetics announced that it had recorded a 56 percent increase in sales to $182 million in the financial year ended in June. Therefore, the firm has registered a growth of around $1 million since 2010. It has earned the loyalty of many clients and transitioned to one of the most recognized brands across the globe. L’Oreal USA’s head, Frederic Roze, is hopeful that the brand will continue to grow.
L’Oreal is a firm headquartered in Paris that is investing heavily in North America to offset a slowdown in Brazil and Hong Kong. The company has acquired IT Cosmetics as a way of diversifying its services and expanding its operation.
The deal is a success for TSG Consumer Partners, an independent asset management firm worth nearly $5 billion. The company has cemented a top position in the finance service and investment industry by financing consumer brands. Currently, the company is diversifying its beauty and fashion portfolio.