Cosmetic Tycoon L'Oreal has done it again and purchased up another company!
This time, the French company is adding NYX to their portfolio.
Neither L'Oreal or NYX released the purchase price, but you can bet your bottom dollar that it was a pretty hefty sum. NYX has been doing fantastic in recent months, with a 57% period to period increase in sales. (They also recently began stocking Target stores nationwide with their products.) In 2013, NYX did more than $93 million in sales which is actually quite fantastic.
How will this affect the loyalists to the brand? Keep reading..
If I had to guess, I would speculate the purchase price was somewhere between $150-$200 million, but that is based purely on industry-standard valuations of 1.5-2 times recent sales. Obviously NYX has had very significant growth lately, so who knows what their actual projections for 2014-2015 are, or how those numbers influenced the purchase price.
As for what sort of impact you can expect this to have on consumers, well, NYX will likely increase their prices by 10% or so and they will probably be found in more stores nationwide in upcoming months. The problem is, that if their availablity increases, that could eventually lead to them being available in China and they may join the ranks of companies who have restarted animal testing to be accepted in the Chinese marketplace.
I will continue to label NYX as cruelty free until their products are actually sold in China, but keep in mind, that they will be officially owned by a parent company who does test on animals regardless of their independent brand policies.
I hope that NYX remains firm in their dedication to being Cruelty Free. L'Oreal has acquired Cruelty Free brands before, like The Body Shop, where the acquired company actually stipulated that they would not tolerate animal testing for any country and as a result, have not been made available to Chinese women, but whether NYX is that firm in their belief system remains to be seen,
We all just need to stay vigilent and keep our eyes out for any changes in NYX's international policies because this is one brand which really could go either way!