The Estée Lauder Companies (ELC) has signed an agreement to acquire make-up brand Too Faced in a US$1.45 billion deal. The acquisition is expected to close in December.
The US beauty giant said that Too Faced will strengthen ELC’s leadership in the fast-growing prestige make-up category globally; increase its consumer reach in the specialty-multi channel; and “win” with millennials – all in strong alignment with group strategy. Travel retail is expected to be a prime focus for the integrated brand.
ELC said that Too Faced has experienced impressive growth over the past several years, and is expected to generate over US$270 million in net sales in 2016. This represents growth of more than +70% for the year and +60% compounded annually over the past three years.
Too Faced has been part of global growth equity firm General Atlantic’s portfolio since 2015, having been co-founded in 1998 by Jerrod Blandino and Jeremy Johnson. The brand is currently led by Johnson, Blandino and CEO Eric Hohl.
“Too Faced is one of the most dynamic make-up brands in the world” – The Estée Lauder Companies President and Chief Executive Officer Fabrizio Freda
ELC described Too Faced as “beloved for its high-quality, innovative formulas, irreverent product names and distinctive packaging,” saying that the brand has developed a strong following among millennials who are passionate about social media, fashion and pop culture. Too Faced has over 7.3 million Instagram followers and is among the top eight make-up brands in the specialty-multi channel in the United States.
“Too Faced is one of the most dynamic make-up brands in the world,” said The Estée Lauder Companies President and Chief Executive Officer Fabrizio Freda. “It has tremendous growth momentum in specialty-multi and online – important, strategic and fast-growing channels.
“With Too Faced, we see terrific opportunity for additional value creation through expansion in new and existing markets both in the U.S. and internationally, as well as in travel retail globally.”
“The entrepreneurial spirit at the heart of The Estée Lauder Companies is evident in the remarkable success of Too Faced,” said The Estée Lauder Companies Executive Chairman William P. Lauder. “Jerrod and Jeremy started the brand with a simple, yet compelling creative concept, and transformed it into something that is truly extraordinary.
“We are absolutely delighted that Jeremy and Jerrod are ‘returning’ to the company where they began their careers in beauty, and we welcome the entire Too Faced team to our family.”
Too Faced’s diverse colour cosmetics range includes “cult favorites” across all make-up sub-categories, ELC said. The iconic Better Than Sex Mascara, which launched in 2013, quickly became the number one-selling mascara with all of the brand’s primary retail partners in multiple markets, and has sold over 2.5 million units globally, ELC noted. Born This Way, the brand’s undetectable foundation launched in July 2015, has also become one of the best-selling foundations within its channels of distribution.
ELC said that Too Faced is also known for its “beautifully-packaged” eye shadow palettes and collections.
“We are delighted to be joining forces with The Estée Lauder Companies as we continue to drive Too Faced’s dynamic growth,” said Johnson and Blandino.
“We started our careers behind the counters of the Estée Lauder brand, so this is truly a ‘homecoming’ for us. The Estée Lauder Companies appreciates our unique vision – to provide innovative, cruelty-free makeup products that give women the confidence to ‘have fun, play and dream big’ – and is committed to ensuring that we retain and build on the core pillars of our brand that are so important to us and our fans. This commitment, combined with ELC’s incredible world-class resources, will help us assure the ongoing growth and success of Too Faced for many years to come.”
