Read all about it! Smashbox and Estée Lauder…
The Estée Lauder Companies Inc. To Acquire Smashbox Beauty Cosmetics, Inc.
Premier Photo Studio-Inspired, Hollywood Cosmetics Brand To Enhance Company’s Portfolio, Widen Prestige Channel Distribution, Extend Digital Expertise and Offer Global Expansion Opportunities
The Estée Lauder Companies Inc. (NYSE: EL) announced today that it has signed a definitive agreement to acquire Smashbox Beauty Cosmetics, Inc., a privately held, photo studio-inspired prestige cosmetics company based in Los Angeles, California. The acquisition is expected to close in July 2010, subject to certain conditions, including regulatory approval. While terms of the deal were not disclosed, the Company said that the transaction is expected to be accretive to earnings in fiscal year 2011, before transaction and integration costs.
The Smashbox brand, with its unique equity positioning, is a strategic complement to The Estée Lauder Companies’ portfolio of leading prestige cosmetic brands. Smashbox’s significant presence in assisted open-sell environments and specialty distribution channels will expand The Estée Lauder Companies’ product offerings and reach new and younger consumers in these high-growth prestige channels. Additionally, The Estée Lauder Companies will leverage its extensive international experience as it seeks to grow the brand and engage Smashbox’s expertise in digital and social media to advance its current capabilities, an important and growing competency for the Company.
Smashbox Beauty Cosmetics was founded in 1996 by brothers Dean and Davis Factor, great-grandsons of the makeup legend Max Factor, who were inspired by photo studio celebrities to create a unique makeup brand that met the highly demanding needs of a professional photo shoot. Since that time, Smashbox has established itself as a highly successful prestige cosmetics brand and a top performer in specialty channels. Currently, the majority of Smashbox’s sales are based in North America.
William P. Lauder, Executive Chairman of The Estée Lauder Companies, 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 realize 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, like The Estée Lauder Companies, is a creativity-driven, consumer-inspired organization with great talent,” said Fabrizio Freda, President and Chief Executive Officer of The Estée Lauder Companies. “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 energized 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.”
“The Estée Lauder Companies is the ideal home for Smashbox,” said Dean Factor, co-founder and Chief Executive Officer, Smashbox Beauty Cosmetics, Inc. “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.”
“Smashbox is the leading Hollywood photo studio-inspired cosmetics brand with a devoted following and timeless appeal,” said John Demsey, Estée Lauder Companies’ Group President, responsible for the Estée Lauder, M•A•C, Tom Ford, Prescriptives, Bobbi Brown, Jo Malone, La Mer brands and after closing, Smashbox. “We are excited to be acquiring a uniquely positioned cosmetics brand with true talent well known for engaging consumers across prestige channels and in the digital media space. Smashbox fits perfectly within our DNA, and we look forward to continuing to delight our consumers together.”
The Estée Lauder Companies will collaborate with the Smashbox organization to develop a comprehensive integration plan to transition Smashbox into The Estee Lauder Companies’ family after closing. Dean Factor, co-founder and Chief Executive Officer, Davis Factor, co-founder, Chief Creative Office and celebrity photographer, and Budd Taylor, President, will each play key roles with respect to these activities and the continued success of Smashbox. Smashbox will continue operating out of its Los Angeles, California office.
The forward-looking statements in this press release, including those in the quoted remarks and those relating to the expectations for closing the acquisition, the impact on the Company’s financial results 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, 2009.
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 140 countries and territories under the following brand names: Estée Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, M•A•C, Bobbi Brown, Tommy Hilfiger, Kiton, La Mer, Donna Karan, Aveda, Jo Malone, Bumble and bumble, Darphin, Michael Kors, American Beauty, Flirt!, Good Skin(TM), Grassroots Research Labs, Sean John, Missoni, Daisy Fuentes, Tom Ford, Coach and Ojon.
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The Estée Lauder Companies Inc. To Acquire Smashbox Beauty Cosmetics, Inc.
Premier Photo Studio-Inspired, Hollywood Cosmetics Brand To Enhance Company’s Portfolio, Widen Prestige Channel Distribution, Extend Digital Expertise and Offer Global Expansion Opportunities
The Estée Lauder Companies Inc. (NYSE: EL) announced today that it has signed a definitive agreement to acquire Smashbox Beauty Cosmetics, Inc., a privately held, photo studio-inspired prestige cosmetics company based in Los Angeles, California. The acquisition is expected to close in July 2010, subject to certain conditions, including regulatory approval. While terms of the deal were not disclosed, the Company said that the transaction is expected to be accretive to earnings in fiscal year 2011, before transaction and integration costs.
The Smashbox brand, with its unique equity positioning, is a strategic complement to The Estée Lauder Companies’ portfolio of leading prestige cosmetic brands. Smashbox’s significant presence in assisted open-sell environments and specialty distribution channels will expand The Estée Lauder Companies’ product offerings and reach new and younger consumers in these high-growth prestige channels. Additionally, The Estée Lauder Companies will leverage its extensive international experience as it seeks to grow the brand and engage Smashbox’s expertise in digital and social media to advance its current capabilities, an important and growing competency for the Company.Smashbox Beauty Cosmetics was founded in 1996 by brothers Dean and Davis Factor, great-grandsons of the makeup legend Max Factor, who were inspired by photo studio celebrities to create a unique makeup brand that met the highly demanding needs of a professional photo shoot. Since that time, Smashbox has established itself as a highly successful prestige cosmetics brand and a top performer in specialty channels. Currently, the majority of Smashbox’s sales are based in North America.William P. Lauder, Executive Chairman of The Estée Lauder Companies, 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 realize 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, like The Estée Lauder Companies, is a creativity-driven, consumer-inspired organization with great talent,” said Fabrizio Freda, President and Chief Executive Officer of The Estée Lauder Companies. “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 energized 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.”
“The Estée Lauder Companies is the ideal home for Smashbox,” said Dean Factor, co-founder and Chief Executive Officer, Smashbox Beauty Cosmetics, Inc. “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.”
“Smashbox is the leading Hollywood photo studio-inspired cosmetics brand with a devoted following and timeless appeal,” said John Demsey, Estée Lauder Companies’ Group President, responsible for the Estée Lauder, M•A•C, Tom Ford, Prescriptives, Bobbi Brown, Jo Malone, La Mer brands and after closing, Smashbox. “We are excited to be acquiring a uniquely positioned cosmetics brand with true talent well known for engaging consumers across prestige channels and in the digital media space. Smashbox fits perfectly within our DNA, and we look forward to continuing to delight our consumers together.”
The Estée Lauder Companies will collaborate with the Smashbox organization to develop a comprehensive integration plan to transition Smashbox into The Estee Lauder Companies’ family after closing. Dean Factor, co-founder and Chief Executive Officer, Davis Factor, co-founder, Chief Creative Office and celebrity photographer, and Budd Taylor, President, will each play key roles with respect to these activities and the continued success of Smashbox. Smashbox will continue operating out of its Los Angeles, California office.
The forward-looking statements in this press release, including those in the quoted remarks and those relating to the expectations for closing the acquisition, the impact on the Company’s financial results 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, 2009.
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 140 countries and territories under the following brand names: Estée Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, M•A•C, Bobbi Brown, Tommy Hilfiger, Kiton, La Mer, Donna Karan, Aveda, Jo Malone, Bumble and bumble, Darphin, Michael Kors, American Beauty, Flirt!, Good Skin(TM), Grassroots Research Labs, Sean John, Missoni, Daisy Fuentes, Tom Ford, Coach and Ojon.
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Well believe it or not, there are still quite a few tubes that I tried out, but still haven't found time to review. So in the hopes of getting "caught up," I decided to talk about a few of them (non-reds!) today. So let's get the lipstick party started!
Blurb: “Intense-Wear” formula enriched with 50% more long-wear color-boost pigments. Lasts up to 8 hours! Vitamins C and E provide essential antioxidant protection.
Blurb: Indulge lips with silky, rich color and lasting moisturization. Our innovative, exclusive sila-silk formula is enhanced with light reflecting polymers and silica for exceptional shine and flawless application. Vitamin E and Tahitian flower provide non-stop hydration and plush, cushion-like comfort. It’s like moisturizer for your lips! Winner of a Self Magazine Healthy Beauty Award and a Glam Beauty Award Nominee for Best Lipstick.
Blurb: The creamiest, richest, smoothest lip colour you can imagine. Our revolutionary gel formula delivers the shine of a gloss, the comfort of a lipstick. Drenches lips in moist, lush colour that glides on buttery-soft, feels luxuriously smooth.
Blurb: Laura Mercier Lip Colour - Shimmer now changes the way you feel about lipstick in one swipe in the newest, revolutionary lip colour formula. The wide range of shades and finishes enhances your lips appearance, protects them from the elements, provides hydration and cares for the lips like skincare.
Blurb: Lips are sealed with decadently creamy, long-lasting color, a wide variety of textures, and a sweet lick of crème caramel. Armored by a menacing dagger, our Lipstick is a weapon of love.
Blurb: Get a gorgeous lit-from-within glow with this radiant silk-like powder. The innovative baked formula imparts a soft veil of shimmer and keeps your skin looking luminous all day. Winner of Self Magazine’s Healthy Beauty Award for Best Bronzer.
Blurb: Get the ultimate high glam look that won't budge all day and night with Smashbox Cosmetics REIGN Jet Set Palette. It is 4 shades of their innovative gel liner that stays blendable for 60 seconds, allowing you to create the look you want without unwanted smudging and smearing. The stylish palette includes their bestselling deep black shade along with three new shades: matte deep brown, metallic deep gold, and metallic bronze. Ideal for those of all skin types and colors who want a sensual, smoky eye. Mica adds a gentle shimmer and shine. Titanium Dioxide protects against sun damage and provides rich mineral color.
