L’Oreal has worked hard in recent years to boost its digital and social-media presence, but its proposed acquisition of NYX Cosmetics gives it a foothold on YouTube bigger in some ways than what it’s been able to build on its own.
L’Oreal announced last week that it plans to acquire NYX, which expects to surpass $100 million in global sales this year, for an undisclosed sum, from private-equity firm HCP & Co. The 15-year-old brand has seen explosive revenue growth in recent years — quintupling since HCP bought its stake in late 2010 — thanks largely to social media, particularly YouTube. The brand’s sales hit $72 million in 2013, up 46% from 2012, and rose an even faster 56% to reach $93 million for the 52 weeks ended May 31 from the year-ago period, according to L’Oreal.
“NYX is a dynamic company that has done a tremendous job of harnessing the power of social media, digital marketing and multichannel distribution,” said Frederic Roze, CEO of L’Oreal USA in announcing the deal.
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