L’Oreal USA to acquire Essie
NEW YORK L’Oreal USA has signed an agreement to acquire the Essie cosmetics business, a move that will bolster L’Oreal’s share in the nail color and care market.
Financial terms of the deal were not disclosed. The acquisition is expected to be completed within 60 to 90 days, and is subject to customary U.S. and international regulatory approvals.
Essie Weingarten founded the Astoria, N.Y.-based company in 1981 and still serves as the company’s president today. The company offers a growing line of nail colors, treatments, accessories, spa products and lip glosses. Essie’s net sales through the last 12 months were $28 million.
“This strategic acquisition will enable L’Oreal to increase our share in the nail color and care market, which has seen significant growth year over year,” stated Frederic Roze, president and CEO of L’Oreal USA.
Weingarten and Max Sortino, CEO of Essie, will continue to play a pivotal role under a multi-year agreement. “It’s a perfect match,” stated Weingarten. “This acquisition presents a tremendous opportunity to allow the Essie brand to grow even stronger. With Max and me as part of the team, we will be able to provide our customers with a greater level of service as we take the brand to new heights.”
Break away from outbreaks
BARRINGTON, Ill. —Merix Pharmaceutical unveiled its new Fast-Results! genital herpes treatment March 1. The only over-the-counter treatment for genital herpes, Fast-Results! answers an unmet need of people who suffer painful symptoms associated with genital herpes outbreaks, and it can be used in conjunction with a prescription therapy for genital herpes.
Fast-Results! genital herpes treatment is comprised of Merix’s patented technology Viracea, which contains an approved ingredient under the Food and Drug Administration OTC antiseptic/antimicrobial monograph, the company stated.
According to the Centers for Disease Control and Prevention, 16% of Americans currently suffer from genital herpes.
No matter how the herpes treatment is categorized, it should drive traffic. According to Nielsen Group data for the 52 weeks ended Feb. 20 across food, drug and mass, all lip remedies were relatively flat, up only 0.7% to $530.7 million. Foot preparations, which include jock itch remedies and other antifungals, totaled $193.6 million in sales, down 7.4%.
Consumers can expect to ‘Payless’ as shoe co. enters beauty
TOPEKA, Kan. —Pharmacy retailers and big-box players will soon have one more competitor in the beauty space come fall when Payless ShoeSource plans to start carrying beauty and body care products in about 1,500 stores.
Through a multiyear deal with Maesa Group, a resource for “Beauty on Demand” products and services, the footwear retailer will move beyond shoes, handbags and other accessories to carry the new lines sold under the Zoe & Zac and Unforgettable Moments brand names.
The products will include a range of body care and beauty care items, such as lotions, creams, butters and shower gels for body, hands and feet; fragrances and mists; color for eyes and lips; and nail polishes. The products will be priced as low as $2.99 an item.
The move follows Payless’ 2009 extension of on-trend accessories sold in its stores, which now feature a complementary accessory collection each season that includes jewelry, belts, sunglasses, hats, scarves, gloves and additional handbags, among other seasonal items.
“Our shoppers have responded very positively to our initiatives to go beyond footwear and democratize fashion and design in accessories as well, and this is one step further to bring customers beauty products,” stated LuAnn Via, CEO of Payless, which is a unit of Collective Brands. “Our new beauty line will feature the latest ideas, colors, shimmers, scents and formulas in the beauty and body care category, and give our customers additional items to complete their personal sense of style, as well as offer great gifting options—all at a great price.”
The company stated that the beauty collections, due in stores in early September, likely will be expanded beyond the initial 1,500 stores in the future, but it did not disclose how many additional stores could carry the products. The company operated nearly 4,500 stores at the end of third quarter 2009.
Payless is gearing up to move beyond shoes, handbags and other accessories, and into beauty and body care products in about 1,500 stores through a multiyear deal with Maesa Group.