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CosmeticsPlus/More.com Deal Offers Drug E-Tailer High-Margin Beauty Items

This article was originally published in The Rose Sheet

Executive Summary

Cosmeticsplus.com will become a shopping "tab" on the health and personal care site more.com under a strategic partnership announced by the two online firms July 18. The new cosmeticsplus.com format will go live in the fourth quarter.

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CosmeticsPlus.com

BuyItNow selling interest in CosmeticsPlus.com to more.com for a minimum of $7.5 mil. in cash and stock, through cash payments made over the next 15 months. Performance-based incentives can increase BuyItNow's payment to $11.3 mil., the company says. BuyItNow offered cosmetics via a link to the CosmeticsPlus.com site but opted to sell its interest to focus on marketing of computers and consumer electronics. Beauty.com and more.com have entered a strategic partnership to jointly develop CosmeticsPlus.com to provide consumers with the "most complete online resource for health, beauty and wellness products." CosmeticsPlus.com will remain a separate brand entity and will be featured as more.com's online beauty store (1"The Rose Sheet" July 24, p. 9)

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