Urban Decay Cyber Monday Sale & Gets Acquired by L’Oreal for $300 – 400 million

Firstly, Urban Decay is having a Cyber Monday sale with 50% off its Sustainable and Deluxe Eye Palettes!
The primer duo is a good deal at $22 and there are also some good sale items. There is the pro size eye primer at 33% off and the Book of Shadows and Black Palette at 50% off.  Go Get something!

Now… It’s being acquired….

Urban Decay, an edgy hip cosmetic company, will be acquired by L’Oreal for $300 – 400 Million.
I’ve loved its edgy look and packaging. Its peacock green eye liner pencils, it’s liquid eye liner bottles that looked a bit like a pretty bottle of poison…

Many of us love their unique eye shadow colors with intense pigment and high staying power! My favorite was the wallpaper palette. I tried the Vice palette and loved it. I’m waiting to try the Naked 2 palette soon.


The eye shadow primers have a been a hit and one of my new favorites is their cream to powder compact foundation that just glides on smoothly.

Many brands loose their edge and iconic emblem once they are bought by large conglomerates where there is pressure to increase sales and appeal to a broader market. I hope Urban Decay will maintain its hip and cutting edge style!

A favorite among young consumers looking for edgier make up looks, Urban Decay reported net sales of $130 million for the year ending June 2012. Existing owners, private equity firm Castanea Partners, were seeking $350 million for Urban Decay during the sale process. Assuming a $350 milllion acquisition price, this would represent a 2.7x LTM Revenue.

Urban Decay is part of the specialist make-up segment that makes up 44% of the luxury make-up market.  It has primarily been sold through self-service, consumer discovery channels such as and

The acquisition will add a high growth make up specialist brand with a young consumer following to L’Oreal’s brands. L’Oreal could offer greater distribution and access to new markets but will hopefully be selective in where it chooses to sell Urban Decay and prevent the dilution and specialty image of the brand.

See the news releases from Reuters and Bloomberg.




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