NEWS: Estee Lauder to Acquire Smashbox Cosmetics
Last Updated (Wednesday, 26 May 2010 09:03)
Estee Lauder said Monday that it will acquire LA makeup brand Smashbox Cosmetics. Analysts said the move would help Estee Lauder to attract new and more youthful customers.
Estee Lauder, whose brands also include Clinique, Aveda and MAC, will gain more exposure at beauty retail chains such as Ulta and Sephora as well as QVC. where much of Smashbox sales come from.
Estee Lauder executives said they were encouraged by Smashbox's growing momentum, its reputation as a Hollywood-oriented brand and its expertise in digital and social media.
"We are excited to be acquiring a uniquely positioned cosmetics brand with true talent well known for engaging consumers," John Demsey, a group president at Estee Lauder, said in a statement. "Smashbox fits perfectly within our DNA."
Smashbox was founded in 1996 by brothers Dean and Davis Factor, great-grandsons of legendary makeup artist Max Factor. The company will continue operating out of its L.A. headquarters.
"The Estee Lauder Cos. is the ideal home for Smashbox," Chief Executive Dean Factor said in a statement. "The company possesses the scale and vision to help transition Smashbox into its next phase of growth."
On Monday, shares of Estee Lauder rose 73 cents, or 1.2%, to $61.77
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