L'Oreal Signs Agreement to Buy Carol's Daughter

L'Oreal USA has signed an agreement to acquire Carol's Daughter, a beauty brand known for its natural hair care products. In a statement released on October 20, L'Oreal USA President and CEO Frederic Roze said the acquisition was part of an effort to "build a new dedicated multi-cultural beauty division."

Founded out of Lisa Price's Brooklyn kitchen in 1993, Carol's Daughter has grown to become the premiere multi-cultural beauty brand, credited with helping pioneer the natural hair movement. According to Essence, Price said she "could not be more proud" to partner with L'Oreal USA.

"I have worked hard for the past 21 years nurturing my brand and am thrilled that we will have a new home with L'Oreal USA," she said. "L'Oreal has a proven track record of helping established companies achieve their full potential while staying true to the core of the brand ... I know my mother (Carol) is smiling as well."

The buyout also came at a great time for Carol's Daughter: The brand closed all but two of its seven stores last April and filed for bankruptcy. At the time, CFO John D. Elmer told the Wall Street Journal that most of the stores had been unprofitable since 2010.

According to Fashionista, a rep for L'Oréal declined to comment on the price tag of the deal, although according to a release, Carol's Daughter had sales of $27 million in the 12 months ending September 30, right around the same size as Le Labo, whose estimated sales are in the range of $20 to $30 million.

Carol's Daughter joins Urban Decay, Essie, NYX, and Maybelline NY on L'Oreal USA's extensive roster of beauty brands. Carol's Daughter will remain in its New York headquarters, operating under the same management.