Cosmetics giant L'Oreal has announced the signing of an agreement with investment company Castanea Partners to acquire Urban Decay. The California based brand, created by Wende Zomnir in 1996, has a strong following among young, fashion forward consumers and L'Oreal hopes that the acquisition will enable it to make inroads into the market for make-up specialist brands, which it says represents 44 of the luxury make-up market in the US. The brand recorded net sales of $ 130m in the year ended June 2012. Commenting on the acquisition, Nicolas Hieronimus, president of L'Oreal Luxe, said: "Urban Decay will beautifully complement L'Oreal Luxe's portfolio of iconic brands. It is the make-up specialist we needed to fully satisfy young women in search of playful colours and inspiration in selective distribution at an accessible price point. It is totally additional to our existing propositions and as such it will contribute significantly to the growth of the division in the years to come."
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