Beauty Giants Continue Niche Brand Buying: L’Oreal, Henkel AG, Kose Corp.

Another California entrepreneur scores with a sale!

Beauty companies are continuing their acquisitions of niche brands with L’Oreal’s latest announcement of acquiring NYX Cosmetics.

L’Oreal, the world’s largest cosmetics maker,  agreed yesterday to acquire Los Angeles-based NYX Cosmetics for $500 million to bolster its makeup offerings in North America, where the consumer-products unit has faltered. “We thought it was a great opportunity and we took it,” said Jean-Paul Agon, the Paris-based company’s chairman and chief executive officer,  adding that L’Oreal was solicited by NYX. “We are pretty good at seizing brands that are at the early stage of development and making them huge.” 

Earlier this  month, Henkel AG (a German-based consumer goods company), agreed to purchase U.S. haircare companies Alterna Haircare, Kenra Professional, and SexyHair for $370 million. This will make Henkel AG a market leader in the the world’s single BIGGEST hair professional market! After this purchase, Henkel will be 4th in the global hair care market after P&G, L’Oreal, and Unilever.

In March of this year, Japan’s Kose Corp. purchased a 93.5% stake in New York-based tarte Cosmetics in a deal worth $135 million dollars, giving the Japanese company its first foothold in the U.S. market. Mainly active in the Japanese market, Kosé counts brands such as Awake and Sekkisei in its portfolio. It also holds licenses for Jill Stuart and Paul Stuart. Kose bought out Encore Consumer Capital’s entire stake in the American beauty company, as well as most of tarte founder Maureen Kelly’s shares.

“It’s been an amazing ride, from the little venture I started in my bedroom 15 years ago to the global powerhouse we’re privileged to now join,” said Maureen Kelly, Founder and CEO of tarte. “Our vision throughout has been to create beauty products that are ‘healthy treats for your skin,’ foster the highest level of customer service and give back to the community and the environment. By joining the KOSÉ family and adding to that rich portfolio, we can build on what we’ve already accomplished with powerful products targeted at new markets.”

The personal-care market is starting to get a little smaller as beauty companies are consolidating to widen their product ranges.

We wonder which beauty giants are next to buy another niche brand?