Estée Lauder To Buy Too Faced Cosmetics
Estée Lauder Cos. Inc. has been buying up other cosmetics companies left and right for quite a while and now they are set up to acquire Too Faced Cosmetics, a brand that has amassed a huge following of brand loyal makeup artists and fans. In this way Estée Lauder has found the fountain of youth – absorbing the youthful customer base of other smaller companies to keep their products current and the freshest of money coming in.
With some great brands beneath the proverbial belt of Estée Lauder, it is a great option for these smaller companies to take. For them it is not just the money, but the protection and backing of a company inching steadily towards the century mark with surety and confidence.
Estée Lauder buying Too Faced Cosmetics is both surprising and unsurprising as it makes sense – Too Faced Cosmetics has great feedback, reviews and consistent appreciable sales numbers. This is a solid purchase for Estée Lauder with no negatives on the horizon, but most of the reason according to speculation by several parties is that the popularity of Too Faced Cosmetics is leading the acquisition.
Too Faced Cosmetics popularity is not to be discounted; they are a great cosmetics brand with an incredibly high number of younger, loyal customers on the contoured edge of makeup trends. The customer base would be a healthy infusion for a company, such as Estée Lauder who has not been able to be confused as a youthful or cutting edge brand in a respectably long amount of time. To stay relevant and not written off as a brand geared to one demographic, Estée Lauder has been working on reaching out to younger consumers for a while.
Brilliantly, Estée Lauder has been infusing their fan base with younger customers through acquisition of brands that already have the audience they want. This has been no small feat, but at the current point some of the most notable acquisitions are M.A.C. Cosmetics, Smashbox, Bobbi Brown, Clinique and most recently Becca Cosmetics at over $230 million and the mega purchase currently being closed – Too Faced Cosmetics. The acquisition of Too Faced Cosmetics is going to cost Estée Lauder $1.45 billion, the largest sum paid to purchase another cosmetics brand in the 70-year existence of Estée Lauder.
According to Estée Lauder, with the purchase of both Becca Cosmetics and Too Faced Cosmetics the company can expect to see a boost in “leadership position in the fast-growing prestige makeup category globally.”
Fabrizio Freda, who is the president and CEO said: “The acquisition of Too Faced is complementary to our portfolio of brands because it has a unique feminine and Millennial communication focus, which is really complementary with very little cannibalization with the rest of our makeup portfolio.”
Rumors are also indicating that Drunk Elephant is an acquisition on the horizon for Estée Lauder in the near future.
Photo courtesy of Too Faced