Beauty brand Carol’s Daughter will be acquired by L’Oréal USA‘s U.S. subsidiary, the companies announced this week, about a month after Carol’s Daughter’s retail arm exited Chapter 11 bankruptcy.
L’Oréal USA said the acquisition of Carol’s Daughter, a brand founded in 1993 that specializes in hair and skin products for women of color, will allow it to build a “new dedicated multi-cultural beauty division as part of our Consumer Products business.”
The beauty conglomerate didn’t disclose a price for its acquisition, which still requires regulatory approvals, but said that Carol’s Daughter pulled in $27 million in revenue during the last 12 months. It sells its products in more than 2,000 retail stores around the country and through an online-sales operation.
Carol’s Daughter will join L’Oréal USA’s lineup of makeup and beauty brands, which includes Maybelline, Kiehl ’s, Essie, Urban Decay, Clarisonic and NYX.
Earlier this year, Lisa Price, the founder, chief executive and daughter of Carol, placed the lagging retail arm of her Carol’s Daughter brand into Chapter 11 bankruptcy to wind-down five of its seven store locations and shore up its balance sheet.
Although the Carol’s Daughter parent company didn’t file for bankruptcy, it agreed to contribute $150,000 to pay attorneys, taxes and other fees as well as to forgive $6.9 million owed by the retail arm to the Carol’s Daughter manufacturing affiliate. Unsecured creditors received between 5% and 10% of the $900,000 they were owed.
Two locations remain open, both in New York City: the company’s flagship store and salon in Harlem, and its profitable location in Atlantic Terminal in Brooklyn.
Of the acquisition by L’Oréal, Ms. Price said in a statement, “I have worked hard for the past 21 years nurturing my brand and am thrilled that we will have a new home with L’Oréal USA…I could not be more proud to begin this next chapter of the Carol’s Daughter brand with them. I know that my mother (Carol) is smiling as well.”
Ms. Price first began making cosmetics out of her kitchen in 1993, and began operating Carol’s Daughter stores a decade later with the backing of celebrities like Will Smith, Jada Pinkett Smith and Jay Z.
The beauty line’s followers also include Oprah Winfrey, who featured the company on her former talk show.