Estee Lauder Companies Inc (NYSE:EL) is planning to acquire cosmetics brand Too Faced.
Estee Lauder Companies Inc is planning to purchase Too Faced for $1.45 billion. Too Faced is expected to report revenue of $270 million in 2016. This represents growth over 70% for the year and 60% compounded annually over the past three years.
Estee Lauder Companies Inc said that it expects the Too Faced brand to help it expand its current business to new customers. This will include Millennials, which the brand is popular with. Too Faced has over 7.3 million followers on Facebook Inc’s (NASDAQ:FB) Instagram. It is also in the top eight makeup brands in the specialty-multi channel in the United States.
“Too Faced is a terrific growth company with an impressive track record of successful product innovation and an authentic connection with its customers,” Andrew Crawford, Managing Director and Global Head of Retail & Consumer at growth equity firm General Atlantic, said in a statement. “We’ve enjoyed a strong partnership with Jeremy, Jerrod, Eric and the rest of the Too Faced team and believe the company’s bright future will only be enhanced as part of The Estée Lauder Companies’ portfolio.”
John Demsey, the Executive Group President at Estee Lauder Companies Inc, will add Too Faced to his portfolio of brands to watch over once the acquisition is complete.
Estee Lauder Companies Inc got its financial advice for the deal from Evercore and BNP Paribas. It’s legal advice came from Lowenstein Sandler LLP. Too Faced had Goldman, Sachs & Co. and Jefferies LLC acting as financial advisors. The brand’s legal advisor was Paul, Weiss, Rifkind, Wharton & Garrison LLP.
The deal from Estee Lauder Companies Inc to acquire cosmetic brand Too Faced is expected to close in December of this year.
EL stock was up slightly as of Noon Tuesday.
