Estée Lauder has signed an agreement to purchase Too Faced cosmetics – one of the fastest growing brands in the US.
The $1.4bn deal is said to be the largest acquisition in Estée Lauder’s history, according to WWD.
With Too Faced, we see terrific opportunity for additional value creation through expansion in new and existing markets in the US and internationally.
Estée Lauder said that the deal would help strengthen its position in prestige make-up, particularly with the millennial market.
Too Faced was created in 1998 by Jerrod Blandino and Jeremy Johnson and focuses on high quality formulas and fun product names. The brand has a huge presence online with 7.3 million followers on Instagram.
Fabrizio Freda, President and CEO at Estée Lauder, said that Too Faced is one of the “most dynamic” brands in the world.
“It has tremendous growth momentum in speciality-multi and online – important, strategic channels. With Too Faced, we see terrific opportunity for additional value creation through expansion in new and existing markets in the US and internationally,” he said.
Jeremy Johnson and Jerrod Blandino said that they were “delighted” to partner with Estée Lauder.
“We started our careers behind the counters of the Estée Lauder brand, so this is truly a homecoming for us,” they said.
They added: “The Estée Lauder Companies appreciates our unique vision – to provide innovative, cruelty-free makeup products that give women the confidence to ‘have fun, play and dream big’ – and is committed to ensuring that we retain and build on the core pillars of our brand that are so important to us and our fans.”
Too Faced’s most popular products include its famous Better Than Sex Mascara, which is a number one bestseller in multiple retailers and several markets.
Last year, the brand launched the Born This Way foundation which has also become a bestseller, alongside its eye shadow palettes.
William P. Lauder, Executive Chairman at Estée Lauder, added: “Jerrod and Jeremy started the brand with a simple, yet compelling creative concept, and transformed it into something that is truly extraordinary.”
