Estee Lauder announced earlier this week that it will be acquiring the Too Faced cosmetics company in a move that is believed to consolidate its market leadership and ensure the latter’s growth.
Too Faced is a cosmetics company launched back in 1998 by Jeremy Johnson and Jerrod Blandino, which are also currently leading the company alongside Eric Hohl, Too Faced CEO.
Too Faced offers face, eye, and lips cosmetics and is recognized for its innovative and high-quality formulas, its product names and also the products’ distinctive packaging.
The cosmetics company is currently placed amongst the top 8 makeup brands of the United States specialty-multi channel.
It ca also boast with quite an Instagram following, with more than 7.3 million subscribers, ass its main market target is also believed to be formed from millennials.
Too Faced has seen an increasing rise over the past few years, as it has registered a 70 percent growth per year, and has 60 percent annual compound over the last three years. The company is expected to surpass the $270 million sum in its 2016 net sales value.
The General Atlantic equity firm has been featuring Too Faced in its portfolio ever since 2015. As part of the sales offer, Estee Lauder has agreed to also buy the other entities to own the brand.
December 2016 was designated as the expected acquisition month and the estimated total sales value is believed to come to about $1.45 billion.
The Estee Lauder Chief Executive and President, Fabrizio Freda, stated that the acquisition could come to mark a tremendous opportunity for the company he represents.
Too Faced has been registering a tremendous growth as it has been targeting the online and specialty-multi domains. These areas are becoming more important and already are fast-growing strategic channels.
According to the aforementioned Freda, the Too Faced buy will account for the opportunity to create additional value by expanding in both new and existing markets.
The expansion will also target both the United States, as well as the international cosmetics market and the travel retail.
Freda also pointed out the company’s growth and applauded its founders and CEO as he declared that Estee Lauder is looking forward to working and expanding the company.
The Too Faced co-founders also expressed their delight over the sale as the two companies will be joining forces. According to their statement, Estee Lauder will continue to build on the same spirit and beliefs which currently characterizes their company.
They also went to state that the mixing up of the Estee Lauder resources with their company commitment will ensure the future success and growth of the brand they created.
Estee Lauder announced that on Tuesday, November 15, it will be hosting a conference call so as to discuss the details of the Too Faced transaction.
Various factors such as acquisition benefits, integration risks, current and future economic status on the international market, consumer, retailer and supplier demands and other such factors will be put in discussion.
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