Thanks so much to reader Rebecca for the heads-up about this news!
Cosmetics giant L'Oreal, owners of Maybelline, NYX, Garnier, Essie, Urban Decay, The Body Shop, Lancome, YSL, Giorgio Armani, Kiehl's, Clarisonic, Redken and many, many other brands we know and love, is going to purchase IT Cosmetics for a whopping $1.2 billion in cash.
Read the full Bloomberg article HERE.
I never had a chance to post about another recent beauty acquisition (Revlon recently agreed to purchase Elizabeth Arden for $419 million) and now this. I can barely keep track these days!
Thoughts? I'd love to hear what you have to say in the comments below.
Thanks again, Rebecca, for the heads-up about this!
As long as it doesn't alter their cruelty free status, I don't mind. However I know loreal does sell in China which is really pro animal testing ðŸ˜
ReplyDeleteI believe it didn't change Urban Decay's status but since it's not my niche, I would keep tabs through My Beauty Bunny or Phyrra.
DeleteIt really comes down to the fact that any money It Cosmetics brings in, benefits the overall loreal brand. So while the sub company is cruelty free, you're still benefitting a company that tests on animals, if that matters to you.
DeleteI agree with those who voiced their concerns for cruelty free. I actually find this more sad news that IT sold out.
DeleteLaura Aeschbacher's comment is absolutely spot on.
While I am a live and let live person, my personal choices matter to me.
Bye bye It.
This was my first thought too. But NYX doesn't test on animals so heres hoping!
DeleteHey, Blog host, you must loves censorship. If you blog on my site, I wouldn't have a problem hearing your opinion. But, since you didn't accept my comment, you are a bias and dictator pushing your personal agenda. Oh, and the woman that I have met in real life got skin cell mutated dues to untested beauty product. You can keep your head in your sand and put your finger in your ears.
DeleteBopkasen: I'm sorry but I have no idea what you're talking about. This is the only comment I have from you, and I promptly approved it (even though you called me names). Sometimes commentsgo straight to spam (I do not control that) thus, I never see them. Perhaps your original comment was marked as spam by Blogger and that's why it wasn't approved. At any rate, if you'd like to comment again, feel free. Although I'd appreciate if you'd refrain from name calling this time around.
DeleteI like their brushes, but nothing else. Wow, I feel like loreal got ripped off. I just don't get the appeal of this company! 1.3 billion for this company? Maybe, it's because I have seen Jamie on QVC and she is one of the most annoying and fake people to ever pitch a product. No, thanks.
ReplyDeleteSorry to hear you feel so negatively about the brand and its owner. But we're all entitled to our opinions. I adore their eyeshadow palettes, CC Cream and other products, and I've loved Jamie since she was on the very first Season of Big Brother (die hard BB fan over here). :)
DeleteI've never seen BB so I never knew she'd been on there..that's interesting to me. I believe she has a news anchor background so I feel like that is why she presents well on tv...maybe to some it comes across as practiced or fake, I just think it is professional. I saw Peter Thomas Roth on QVC recently and he was not as smooth in his delivery as Jamie. No shade, just sayin'.
DeleteI have a lot of IT products particularly thru the QVC sets/deals...pretty pleased with the products and how they do their thing. Hope nothing changes.
Hah, I thought I was the only one who watched Jamie on Big Brother way back in the day. At the time, she was an aspiring news anchor.
DeleteAs for It Cosmetics, I've been really impressed with their products. Solid, workhorse products that don't overpromise.
Wow! I watched that first season of BB and I didn't even remember that she was on there. I'm a little worried about the buyout. If nothing changes, OK, I guess we'll see.
DeleteI ordered the CC Illuminating Cream with the brush, tightline mascara, and the lip balm. I thought I would hate it after I got it and switched it. It looked so shiny on my hand. But I absolutely love it. It is what I find myself using most, moreso than my Too Faced or Fiona Stiles foundation. I got a great deal on the set, I probably would not have bought it otherwise as I feel their products are way overpriced. I got the set from QVC.
DeleteI think that L'oreal is like the dictatorship Russia of cosmetics and it wants to take over the world.
ReplyDeleteSame, I really loathe L'oreal. I don't buy from L'Oreal or any L'oreal owned brand, which is getting harder to do since they seem to own so many popular brands now.
DeleteThe goal of all corporations is to constantly keep growing and acquiring and increasing revenue. Love it or hate it (not my place to say either way), that's capitalism!
DeleteActually, I should clarify and say that's Corporate Capitalism. I think that's the correct term (I'm sure any economics majors reading this will correct me if I'm wrong)!
DeleteThanks for bringing politics into this! Because we couldn't keep this a friendly place for all, obviously.
DeleteAlisa: Not sure if you were directing that to me, but I was just explaining that it's not really a dictatorship--it's just the way business/corporations work.
DeleteI wasn't G, was referring to L, sorry I didn't make it clear. I come here to escape politics and constant country bashing (I happen to be Russian). Isn't it nice to have a friendly little corner on the vastness of the Internet without judgment and ideological warfare? It makes me very sad that you cannot escape the hate and judgment even here.
DeleteG. Is completely right.
DeleteWhen Shiseido bought Bare Escentuals/Bare Minerals, they assured the customer base that nothing would change, and BE would continue as it had. Well, a few years later, and nothing is the same. Most of the eye shadows are pressed, not loose, the company is pushing liquid foundations, they're cutting Ready foundation loose, and keep changing out their skin care and lipstick lines every 18-24 months for a new formulation. Now they are just like every other cosmetic out there.
ReplyDeleteIf there's something unique at IT, get it now while you still have a chance.
The only optimistic thing I can say in response to this is that I love several of the products that NYX and UD released AFTER they were both acquired by L'Oreal. Sometimes it can mean that these brands have access to new technologies that they may have previously not had access to, so hopefully we continue to see some great things from IT moving forward. Fingers crossed!
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ReplyDeleteI'm not sure how this acquisition will effect IT cosmetics but usually they do have some solid products like the CC cream as well as bye bye under eye and some of the brushes. Albeit they may not work for everyone but I like em.
Nooo! So sad! I hate how Loreal buys everthing! I hope they stay cruelty free...
ReplyDeleteHappy for Jamie that her hard work paid odd, hopefully they will continue to be cruelty free snd true to IT.
ReplyDeleteI hope they dont start changing everything, I adore it cosmetics.. Not sure how I feel about this
ReplyDeleteSame here.
DeleteMaybe IT cosmetics got too big, too fast and it made more sense to sell than lose their products integrity due to inability to meet customer demand. I hope they keep their products original formula. As for L'Oréal buying "everything", they already have their foot firmly in the door internationally, not many companies have that much power to propel the products forward like that and if Jamie negotiated any type of royalty, well then booyah!
ReplyDeleteJamie just posted an email explaining her rationale for the decision to sell; pretty much what you said, she wants the ability to sell their products everywhere. (I think IT girls got the email). Like everyone else, I hope they don't change the products' formulas.
DeleteI'm a little worried about the company changing and hope that Jamie stays involved in product creation! I think the biggest thing that made IT Cosmetics such a success is Jamie's personal story that she created the products to help cover her rosacea in a more natural-looking way. Cult products like Bye Bye Under Eye and the CC+ Cream are the direct result of her determination and innovation and if a big corporation takes over, the same level of thought and care may not go into the products any more. That would be really sad!
DeleteTotally agree.
DeleteWell personally I think Essie and Urban Decay just keep getting better and better, so I hope this means good things for IT! I have one of their eyeshadow pallets that I use a lot in the winter, and their CC cream with the SPF 50+ is excellent.
ReplyDeleteI like the CC cream, in fact I just bought the TsV a couple weeks ago from QVC. I do not like that the newest eye shadow palette is made in China
ReplyDeleteJust wanted to say WHOAAAA that is a lot of money. Happy for Jamie!
ReplyDeleteI am surprised they paid so much, I never would have guessed It was valued that high. I was mad at myself for missing that ulta deal on bye bye undereye, I guess I should buy it soon.
ReplyDeleteI was super surprised when Revlon bought Elizabeth Arden. I'm not sure they should have taken that on. Maybe they will make some awesome changes to make EA seem less ladies-of-a-certainage? I can't think of an EA product that has appealed to me in forever. Let me know if I'm missing out on something.
Bummer because this is how brands lose their uniqueness. For example, I just purchased the new Loreal quad in Avenue Des Roses and when I got it home, it suddenly looked 'familiar'. Well, it's almost a dupe for the Lancome Color Design in Sienna Sultry.
ReplyDeleteMonica.
The email Jamie sent out CLEARLY states "we are committed to staying a cruelty free brand and not testing on animals." "I will remain as CEO so I can assure you the integrity of our products, brand and mission will remain 100% true to IT!" I love all 9 products I own, and am happy women around the world will now have access! Congrats are all we should be talking about, go Jamie!
ReplyDeleteThank goodness then, I didn't get thqt email for some reason and was worried.
DeleteWhoops I did get that email, it just got buried. You're exactly right Margaret, now lets just hope it stays that way :)
DeleteOK that makes me feel a little better. Thank you for posting!
DeleteExcited to think that IT will be sold in more venues, not just ULTA/QVC!
ReplyDeleteCongrats, Jamie, you deserve this!!
In my opinion Loreal probably wanted to get their hands on the IT cosmetics patented/proprietary chemical formulas. That's what happened when they bought Urban Decay. And so you can expect better formulas and cosmetics quality in all house brands under Loreal. Ultimately the subsidiaries function independently, but now you have "in-house sharing" of chemical formulation knowledge, which is a boon for all makeup lovers.
ReplyDeleteAlthough I do agree that the $1.3bn is a large amount, but typically strategic acquisitions will always cost more (especially if there was some sort of behind the scenes bidding war between Estee Lauder/Loreal/Revlon/P&G) which typically drives up the final purchase price.
(I'm a buy-out acquisitions finance analyst, but I don't typically cover cosmetcs, though I'm a fan of this site! just my two cents in here). Overall I'm supportive and happy that the owners of IT were able to cash out, and still stay involved.
I know a lot of people might be upset and feel like Jamie "sold out", but I am personally excited. I love IT Cosmetic's brushes, but as a WOC I've never been able to try any of their most popular products like the under-eye concealer and CC cream because their shade range for WOC was nonexistent, and I think in 2016 especially, that's unacceptable. Here's to hoping that L'Oreal is able to expand their shade range to make the brand more inclusive.
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