Estee Lauder acquires Too Faced
Estee Lauder has purchased make-up brand Too Faced cosmetics from private equity firm General Atlantic LLC. The $1.45 billion purchase is the biggest deal in Estee Lauder’s history.
Fabrizio Freda, president and chief executive officer of The Estee Lauder Companies stated, “Too Faced is one of the most dynamic makeup brands in the world. It has tremendous growth momentum in specialty-multi and online – important, strategic and fast-growing channels. With Too Faced, we see terrific opportunity for additional value creation through expansion in new and existing markets both in the U.S. and internationally, as well as in travel retail globally. Jeremy, Jerrod, Eric and the entire Too Faced team have built an amazing and innovative brand. We look forward to working with them to continue to build on the brand’s winning spirit.”
Too Faced is a California-based make-up brand and one of the top eight make-up brands in the United States specialty-multi channel. The main demographic is millennial females. Over the course of 2016, the brand has brought in $270 million in sales. This is a 70% growth in comparison to last year.
This purchase is indicative of Estee Lauder’s attempt to modernize after lagging quarterly sales. Recently, Estee Lauder opened their first stand-alone store for their millennial-focused diffusion line The Estee Edit, marking a new area for distribution and expansion for the brand.
This acquisition will close in December of 2016.
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