L’Oreal USA Purchases Carol’s Daughter To Reach The Multicultural Market
L’Oreal USA announced today that it has purchased beauty company Carol’s Daughter, which will help the company reach a diverse consumer base.
“Carol’s Daughter possesses an expertise in the multi-cultural consumer segment, a rapidly expanding market that represents an important growth opportunity in the beauty industry,” said Frederic Roze, president and CEO of L’Oreal USA. “This acquisition will enable L’Oreal USA to build a new dedicated multi-cultural beauty division as part of our Consumer Products business, and strengthen the company’s position in this dynamic market.”
Carol’s Daughter, which was founded in 1993 by Lisa Price, will continue with its current leadership team, based out of its New York City headquarters.
“L’Oreal has a proven track record of helping established companies achieve their full potential while staying true to the core of the brand and they have an understanding of the future of multi-cultural beauty. I could not be more proud to begin this next chapter of the Carol’s Daughter brand with them,” said Price in a statement.
In May, Carol’s Daughter announced the closing of five store locations as part of a bankruptcy reorganization. Many at the time questioned the financial health of the company. Price addressed those questions directly in a Facebook post.
“It is important to set the record straight. Carol’s Daughter is still going strong after twenty-one years and the future has never looked brighter. As part of our increased focus on new retail channels, we have decided to close five of our stores. This was portrayed as if we are having some challenges, but nothing could be further from the truth,” she wrote at the time.
“The nationwide Target launch this past March is an opportunity that very few companies receive. I am proud of that. I am also proud and blessed to have valuable partners, like HSN, Ulta and Sephora inside JC Penney. These partnerships have enabled me to distribute Carol’s Daughter in over 2,500 stores and on direct TV which is far beyond the reach of my living room in Brooklyn,” the letter continued.
Today’s sale is subject to the final regulatory approvals. Other financial details are undisclosed.