L’Oreal invest in NYX Cosmetics, “because you’re worth it”

 L’Oreal, the global cosmetics and beauty products company based in France, has announced today that it is acquiring the Los Angeles-based NYX Cosmetics company. NYX was founded in 1999 and is named after the ancient Greek goddess who ruled the night. It sells its products either direct via its website or in both cosmetic and fashion retail outlets in over 70 countries worldwide and claims to be one of the fast growing cosmetic brands globally.

L’Oreal’s chairman, Jean-Paul Agon, was yesterday quoted as telling Bloomberg that the group may spend up to USD 5bn on acquisitions in the first half of 2014. This figure looks easily achievable given that at the beginning of April they paid USD 843m for Magic Holdings International, a Grand Cayman, Cayman Islands-incorporated skincare product manufacturing holding company. This was followed up at end of April when L’Oreal paid USD 328m for Laboratoires Decléor SASU (Decléor), an Aix-en-Provence, France-based cosmetics and other skincare products manufacturer and Carita International, a Paris, France-based cosmetics and skincare products manufacturer.

Analysts estimate that NYX will have cost somewhere between USD 185 and USD 300m (so upwards of 2x’s NYX’s revenues) so there is still plenty of money left in that USD 5bn war chest should L’Oreal feel “because it’s worth it”.