L’Oréal To Acquire Essie Cosmetics

L’Oréal USA, the New York-based subsidiary of L’Oréal S.A., has signed an agreement to acquire the Essie cosmetics business. A purchase price was not disclosed.

Essie Cosmetics, Ltd., was founded in 1981 by Essie Weingarten, who still serves as the company’s president.Based in Astoria, NY, the company offers a growing line of nail colors, treatments, accessories, spa products and lip glosses.Essie’s net sales through the last 12 months were $28 million.

“This strategic acquisition will enable L’Oréal to increase our share in the nail color and care market which has seen significant growth year over year,” said Frédéric Rozé, president and CEO of L’Oréal USA.

Ms. Weingarten and Max Sortino, CEO of Essie, will continue to play a pivotal role under a multi-year agreement.“It’s a perfect match,” said Ms. Weingarten.“This acquisition presents a tremendous opportunity to allow the Essie brand to grow even stronger. With Max and me as part of the team, we will be able to provide our customers with a greater level of service as we take the brand to new heights.”

According to Colin Hession, this could be the start of a buying pattern for L’Oréal.

“This is more filling of ‘white space’, ie a niche segment where L’Oreal have not been a significant player—expect more of the same,” said Hession, Happi columnist and managing director, Colin Hession Consulting.

The acquisition is expected to be completed within 60 to 90 days, subject to customary U.S. and international regulatory approvals.