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The acquisition by Estée Lauder is expected to drive Smashbox’s next phase of growth |
US.The Estée Lauder Companies has signed a definitive agreement to acquire Smashbox Beauty Cosmetics.
The acquisition is expected to close in July, subject to regulatory approval. While terms of the deal were not disclosed, Estée Lauder said that the transaction is “expected to be accretive to earnings in fiscal year 2011, before transaction and integration costs.”
The Estée Lauder Companies Executive Chairman William P. Lauder said: “One of the enduring strengths of The Estée Lauder Companies is our ability to identify brands with unique positioning and nurture those brands to accelerate their momentum and realise their full growth potential.
“The addition of Smashbox to our portfolio continues this 64-year legacy. We expect that with our strong cultural synergies and shared appreciation for family heritage, this will be a wonderful union.”
Smashbox will continue to operate from its Los Angeles office with the current management team playing key roles in integrating the organisation into The Estée Lauder Companies’ family, said the group.
“Smashbox, like The Estée Lauder Companies, is a creativity-driven, consumer-inspired organization with great talent,” said The Estée Lauder Companies President & CEO Fabrizio Freda.
“Adding Smashbox to our portfolio of brands will help strengthen our presence in prestige specialty channels worldwide, increase our product offerings in this important category and enhance our capabilities in digital media and direct response television. We are energised by the promising momentum of Smashbox and believe the brand will help attract new and younger consumers to The Estée Lauder Companies all over the world.”
Smashbox Co-Founder and CEO Dean Factor added: “The Estée Lauder Companies is the ideal home for Smashbox. The Company possesses the scale and vision to help transition Smashbox into its next phase of growth, and its track record of nurturing and growing prestige brands is second to none.”
“Moreover, we share a similar cultural heritage and dedication to consumer-inspired innovation and creativity. We expect to benefit greatly from The Estée Lauder Companies’ extensive knowledge in product development, operational execution, and international marketing and distribution, and we look forward to the next great period of growth for the brand.”
