Cosmetics company L'Oréal Group (EPA: OR) agreed to acquire Carol's Daughter Holdings LLC, a maker of hair and skincare products, as a means to bolster makeup offerings in North America.
Carol's Daughter, based in New York, generated sales of $27 million over the course of 12 months ending September 30. Terms of the sale to Paris-based L'Oréal were not disclosed.
The acquisition was announced just days after L’Oreal's rival Estee Lauder Cos. Inc. agreed to acquire New York-based perfume store chain Le Labo Inc.
Carol's Daughter is intended to be a part of a "multi-cultural beauty division," says CEO Frédéric Rozé, noting the company’s racially-diverse customer base. The target is also known for using natural ingredients.
Carol's Daughter, which was founded by entrepreneur Lisa Price in 1993, will continue operating under current management once the transaction closes.
The deal comes just months after companies affiliated with the beauty brand filed for Chapter 11 bankruptcy protection on April 24 with reported assets and debts of up to $10 million.
L'Oréal has been on the lookout for acquisition targets. In June, the world’s largest cosmetics maker agreed to acquire Los Angeles-based NYX Cosmetics for an undisclosed price. Before that, L’Oreal acquired facial-mask maker Magic Holdings International Ltd. and spa brands Decleor and Carita. Including the buyback of 8 percent of its stock held by Nestle SA, L’Oreal has spent more than $5 billion on deals in 2014.