Castanea Partners exits cosmetics brand Urban Decay to L’Oréal


US private equity firm Castanea Partners has agreed to sell colour cosmetics brand Urban Decay to beauty company L’Oréal.

Based in Newport Beach California, the company was created in 1996 by make-up expert Wende Zomnir. Castanea invested in the company in March 2009.

In the fiscal year ended in June 2012, Urban Decay recorded net sales of €130m. The market for make-up specialist brands represents 44 per cent of the luxury make-up market in the US, it said.

Castanea is currently investing from its third fund, a $500m vehicle that targets companies with enterprise values up to $250m. Earlier this year, the Boston-based firm led a $16m investment in US blow dry chain Drybar.

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