[REACTIONS] Beauty Business Boss Moves: L’Oreal Acquires Carol’s Daughter

Consumers respond to news with mixed emotions, from cheers to disappointment

(Image: File)

L’Oreal USA announced today via a statement that they have finalized an agreement to acquire Carol’s Daughter.

This news comes after the company recently announced filing bankruptcy.

Founded by natural haircare entrepreneur Lisa Price, Carol’s Daughter offers products available at specialty beauty stores, mass retailers, on HSN, through e-commerce and at branded locations in New York City. For the 12 months ending Sept. 30, the company had net sales of $27 million.

“Carol’s Daughter possesses an expertise in the multi-cultural consumer segment, a rapidly expanding market that represents an important growth opportunity in the beauty industry,” Frederic Roze, president and CEO of L’Oreal USA, said in a statement. “This acquisition will enable L’Oreal USA to build a new dedicated multi-cultural beauty division as part of our Consumer Products business, and strengthen the company’s position in this dynamic market.”

Carol’s Daughter will continue to operate out of their New York City headquarters under the brand’s current leadership team, the statement indicated. The brand joins L’Oreal’s roster of American brands which includes Maybelline NY, Kiehl’s, Essie, Urban Decay, Clarisonic and NYX.

WATCH more about her journey on Black Enterprise Business Report:

 

“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,” said Lisa Price, founder and president of Carol’s Daughter. “L’Oreal has a proven track record of helping established companies achieve their full potential while staying true to the core of the brand and they have an understanding of the future of multi-cultural beauty. 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.”

Price started her business as a hobby in her New York City apartment, and began selling what would become a huge haircare brand at church flea markets. The products would become a major force in the widespread popularity of women of color embracing their natural hair, and the company soon expanded into four storefronts. Named after her mother, the brand would gain a loyal following among everyday women and celebrities alike, with record exec Steve Stoute having assembled a star-studded list of investors including Jay Z and Will and Jada Smith. Carol’s Daughter expanded further into retail stores including Macy’s and Target, making it the multimillion-dollar empire it is today.

Upon hearing the news some consumers and industry watchers expressed their congratulations, while others had mixed feelings or expressed utter disappointment. Check out a few reactions from social media on the news of the acquisition:

What are your thoughts on L’Oreal’s acquisition of Carol’s Daughter? Follow @BlackEnterprise and #Soundoff on Twitter or leave your comments below.