One of QVC’s popular makeup vendors, IT Cosmetics, is being purchased by L’Oreal for $1.2 billion, the French company said Friday.
Let’s hope this doesn’t mean a decline in the the up-and-coming makeup line, which according to Bloomberg News is based in our home state, in Jersey City.
Prior popular lines on QVC, such as Bare Minerals and Philosophy, were later sold by their female-entrepreneur owners to giant corporations, leading customers to complain that the products’ quality declined subsequently.
According to The Wall Street Journal, IT Cosmetics had net sales of $182 million for the fiscal year ended June 30, a 56 percent jump over the prior year.
Here is the press release on the sale.
Clichy, New York – 22 July 2016 – L’Oréal announced today the signing of 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.
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 that empower them to feel confident and beautiful.
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.
“At IT Cosmetics our mission is to make the world more beautiful through our products, through our actions and through our belief that every woman is beautiful and deserves to feel her most beautiful,” said Jamie Kern Lima, Co-Founder & CEO, IT Cosmetics.
“Our makeup and skincare products are not only game-changing in their innovation, they are also life-changing for real women everywhere. Partnering with L’Oréal and utilizing the power of their global infrastructure will help us scale our mission in an even bigger way and we couldn’t be more excited.”
The closing is subject to the standard regulatory approvals and other customary conditions.