The NYX cosmetics brand has been for sale since March, and sources say L’Oreal is first in line to make the big purchase. “The indie mass-market color cosmetics brand is close to finalizing a deal with beauty giant L’Oréal…While nothing has been signed, a potential deal could come as early as the end of the month. NYX, which generates wholesale sales north of $100 million, could fetch as high as $500 million,” reported WWD.
The cruelty-free brand has gained a loyal fan base over time for its distinct morality, and many people have voiced their disagreement with the new partnership on the NYX Facebook page. People may be jumping the gun on their accusations, however. L’Oreal also owns Urban Decay who has since been deemed cruelty free, so there’s a chance NYX will be able to hold onto its core values, according to Logical Harmony.
There are other companies in the running with L’Oreal, such as TPG Growth and TSG Consumer partners. Pambianco News reported that as of January, L’Oreal bought Magic Holdings International Ltd., TPG Growth invested in E.l.f. and TSG sold off hair-care and skin-care brands to Henkel AG and Lion Capital. Nonetheless, L’Oreal has a reputation for obtaining brands early on, so they seem to be the understood favorite.
There have yet to be any more updates regarding the buying deal since the original announcement, but if L’Oreal does decide to follow through, it will be considered one of the most substantial mergers that the industry has seen in quite some time.