Estée Lauder snaps up Smashbox
Cult photo studio inspired colour cosmetics to boost Lauder portfolio
The Estée Lauder Companies Inc has signed a definitive agreement to acquire Smashbox Beauty Cosmetics Inc, a privately held, photo studio-inspired prestige cosmetics company based in Los Angeles, California, US. The acquisition is expected to close in July 2010, subject to conditions including regulatory approval.
Smashbox is seen as a strategic complement to Lauder’s portfolio of prestige cosmetic brands. Its significant presence in assisted open-sell environments and speciality distribution channels are expected to help Lauder reach new and younger consumers in these high growth prestige channels, while Lauder’s international experience will help grow the brand and will engage Smashbox's expertise in digital and social media.
Smashbox Beauty Cosmetics was founded in 1996 by Dean and Davis Factor, great-grandsons of Max Factor. The majority of its sales are made in North America.
"Smashbox, like The Estee Lauder Companies, is a creativity-driven, consumer-inspired organisation with great talent," commented Fabrizio Freda, president and ceo of The Estée Lauder Companies. "Adding Smashbox to our portfolio of brands will help strengthen our presence in prestige specialty channels worldwide, increase our product offerings in this important category and enhance our capabilities in digital media and direct response television. We are energised by the promising momentum of Smashbox and believe the brand will help attract new and younger consumers to The Estée Lauder Companies all over the world."
Lauder says Dean Factor, co-founder and ceo; Davis Factor, co-founder, cco and celebrity photographer; and Budd Taylor, president will continue to play key roles and that Smashbox will continue to operate from its Los Angeles, California office.
Terms of the deal have not been disclosed but Lauder says the transaction is expected to be accretive to earnings in fiscal year 2011, before transaction and integration costs.