Prestige Cosmetics Brand Offers Innovative
Complexion Products for a Wide Range of Skin Tones
The Estée Lauder Companies Inc. (NYSE:EL) announced today that
it has signed an agreement to acquire BECCA Cosmetics, a
high-growth makeup brand offering complexion and color products
that flatter a wide range of skin tones and enhance women’s
features. Terms of the deal were not disclosed. The acquisition is
expected to close in November 2016.
Launched in 2001, BECCA Cosmetics has experienced exceptional
growth over the last several years, with a curated product line
that includes primers, concealers, foundations, blushes and
highlighters that use the beauty of light to enhance the
complexion. Most of the brand’s foundations are available in up to
twenty shades, with half designed for medium to deep tones and half
designed for light to medium tones. This commitment to developing
premium, luxurious products in a balanced range of wearable shades
for all skin tones makes BECCA a highly coveted brand for women of
all ages and ethnicities.
Since 2011, BECCA has been led by President and CEO Robert
DeBaker, and CFO/COO James MacPherson, and has been part of Luxury
Brand Partners’ portfolio since 2012. The brand has a robust
presence in specialty-multi retailers Sephora and Ulta in North
America, and is also sold in select department stores, as well as
through BECCACosmetics.com. While the majority of the brand’s sales
are in North America, it is currently engaged in a strategic global
expansion with Sephora across Southeast Asia, Europe and the Middle
East. BECCA has a strong social media presence, with more than one
million Instagram followers, and an engaged consumer base of all
ages and backgrounds.
“BECCA Cosmetics is a wonderful addition to our portfolio of
prestige beauty brands,” said Fabrizio Freda, President and Chief
Executive Officer of The Estée Lauder Companies Inc. “Its unique
focus on complexion products that flatter a wide range of skin
tones, combined with its sophisticated yet accessible consumer and
digital engagement across channels has inspired a devoted fan base.
We see terrific growth opportunities for BECCA as it expands
globally and continues to cultivate its online and digital
expertise. We are excited to work with Bob, Jim, and the entire
BECCA team to continue building on the brand’s terrific
success.”
“The Estée Lauder Companies is the ideal home for BECCA,” said
Bob DeBaker, President and CEO of BECCA Cosmetics. “The Company has
the scale and vision to help elevate BECCA to its next phase of
growth while encouraging us to continue to build our unique brand
equity. We believe that beauty products should reflect a diverse
range of skin tones and help all women create a naturally
beautiful, yet individual look – and ELC is incredibly supportive
of our mission. We’re thrilled to be joining the team.”
Recently, BECCA has established itself as the authority in using
its expertise in the beauty of light to create a variety of effects
and benefits – from highlighting to blurring to a soft-focused halo
effect. The now-iconic Shimmering Skin Perfector Pressed in
Champagne Pop, which was created in 2015 in collaboration with
celebrated makeup artist and YouTube sensation Jaclyn Hill, was a
consumer favorite and became the top-selling luminizer of the year
in the United States.
“The BECCA philosophy of inclusive beauty is a terrific match
for The Estée Lauder Companies,” said William P. Lauder, Executive
Chairman, The Estée Lauder Companies Inc. “One of our leading
strengths is the ability to identify brands with unique positioning
and nurture them to realize their full growth potential. We are so
pleased to partner with Bob and Jim to continue this legacy, and we
welcome them and their team to our family.”
“The Estée Lauder Companies is the perfect company to
take BECCA to the next level, especially on a global
scale. I have so much respect for The Estée
Lauder Companies, making this the perfect
fit,” said Tevya Finger, President and CEO of
Luxury Brand Partners.
John Demsey, Executive Group President, The Estée Lauder
Companies Inc., will add BECCA Cosmetics to the portfolio of brands
that he oversees.
In this transaction, UBS served as financial advisor to The
Estée Lauder Companies Inc., while Lowenstein Sandler LLP served as
legal counsel. BECCA Cosmetics received financial advice from Piper
Jaffray and legal counsel from Greenberg Traurig.
The forward-looking statements in this press release, including
those in the quoted remarks and those relating to the expectations
for the acquired brand and the benefits of the acquisition, involve
risks and uncertainties. Factors that could cause actual results to
differ materially from those forward-looking statements include
current economic and other conditions in the global marketplace,
actions by retailers, suppliers and consumers, competition, the
Company’s ability to successfully integrate the acquired business
and/or implement its long-term strategic plan, and those described
in the Company’s annual report on Form 10-K for the year ended June
30, 2016.
About The Estée Lauder Companies Inc.
The Estée Lauder Companies Inc. is one of the world’s leading
manufacturers and marketers of quality skin care, makeup, fragrance
and hair care products. The Company’s products are sold in over 150
countries and territories under brand names including: Estée
Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, Tommy
Hilfiger, M·A·C, Kiton, La Mer, Bobbi Brown, Donna Karan New York,
DKNY, Aveda, Jo Malone London, Bumble and bumble, Michael Kors,
Darphin, Tom Ford, Smashbox, Ermenegildo Zegna, AERIN, Tory Burch,
RODIN olio lusso, Le Labo, Editions de Parfums Frédéric Malle,
GLAMGLOW and By Kilian.
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The Estée Lauder Companies Inc.Investor
Relations:Dennis D’Andrea, (212) 572-4384orMedia
Relations:Jill Marvin, (212) 572-4438
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