so if you don't know the beauty world is abuzz at the moment with L'Oreal's announcement to buy Urban Decay now I have been scouring the L'Oreal web pages looking for a official press release I cannot find a official release on any of the L'Oreal pages (if any of you know leave the link in the comments below ;p) but I have taken this from a article written by the The Guardian though if you google L'Oreal to buy Urban Decay you will find a slew of information.
French beauty giant L'Oréal is attempting to raise its street cred with the acquisition of edgy makeup brand Urban Decay.So the big controversy is that Urban Decay is a recognised Cruelty free company certified with the leaping bunny symbol... A symbol that they nearly lost early this year when they announced they would be selling their products in China where it is required by law that all cosmetic products are tested on animals.... Need less to say there was a massive back lash from the beauty world and Urban decay quickly rescinded the idea Urban decay have release a short statement
The financial details were not disclosed but it is thought L'Oréal paid $300-400m (£187-250m) for the California-based company, which is owned by private-equity firm Castanea Partners.
Urban Decay crashed on to the beauty scene in the mid-90s with eye-catching packaging and products with names like Stray Dog, an ash-brown eye-shadow, and the pale purple Asphyxia.
The deal will give L'Oréal another entry into the fast-growing area of specialist brands, which it says represents 44% of the luxury makeup market in the US.
Nicolas Hieronimus, the L'Oréal Luxe president, said: "It is the makeup specialist we needed to fully satisfy young women in search of playful colours and inspiration, at an accessible price point."
Urban Decay makeup is sold through specialist retailers, such as Sephora, or online shops, but this deal will extend its reach across the globe.
Tim Warner, the general manager of Urban Decay, said: "L'Oréal's strong innovation capabilities and presence in every channel of distribution will enable Urban Decay to reach its full potential in the marketplace."
French conglomerate LVMH Moët Hennessy Louis Vuitton bought Urban Decay in 2000, selling it to private equity three years later
"Though our ownership is changing, our policies are not. We just spoke to both the CCIC and PETA, and will keep our cruelty-free bunny icons. Urban Decay is staying cruelty-free and proud.”And while Urban Decay are against animal testing L'Oreal not so much there is much questioning if L'Oreal will attempt to have Urban Decay released in China (therefore having products tested on animals) or if L'Oreal will allow Urban Decay to stay true to their creed.
I am going to be veryinterested to see where this goes a lot of people have already claimed that they will now no longer support Urban Decay as they dont want to support a Non-curilty free 3rd party the real question is going to be will Urban Decay be able to stand being in a negative light once again? and will they become TOO main stream taking away form their unique flare? These questions will deffinetly be answered in time I am sure!
Another thing I will be interested to see will be if L'Oreal will allow Urban Decay into Australia to set an attraction for the younger generation and if so will be become a 'everywhere department store' brand like we see L'Oreal here in Australia? If so that would be a big boost for L'Oreal as here in Oz we don't have really 'fun, young' brands...
Whats your opinion on the takeover?