L’Oréal Luxe gets edgy in cosmetics.

L’Oréal has taken a bold stake in the assisted self-service and e-commerce channels—including Ulta and Sephora—thanks to an agreement with Castanea Partners, in which it will acquire Newport Beach, CA firm Urban Decay. Created in 1996 by makeup expert Wende Zomnir, the brand has built a reputation based on the concept of “beauty with an edge” and values of “femininity and irreverence.” The line has star products in the eye category such as the Naked Palette, and its new foundation, Naked Skin. Urban Decay is especially popular among youthful consumers who are attracted by the fashion-forward image of the brand—and its innovative packaging. According to L’Oréal, in the fiscal year ended June 2012, Urban Decay recorded net sales of $130 million.

Nicolas Hieronimus, president L’Oréal Luxe, commented on the strategy behind the acquisition: “Urban Decay will beautifully complement L’Oréal Luxe’s portfolio of iconic brands. It is the makeup specialist we needed to fully satisfy young women in search of playful colors 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.”

In the U.S., Urban Decay will report to Carol Hamilton, president of L’Oréal Luxe USA.