Estee Lauder to Acquire Smashbox

[The Situation]

The Estee Lauder Cos. plans to acquire the photo-studio born makeup company Smashbox Beauty Cosmetics Inc.

Lauder announced today that it has signed a definitive agreement to buy Los Angeles-based company. The deal is expected to close in July, subject to certain conditions including regulatory approval. The brand—founded by the great-grandsons of legendary Hollywood makeup artist Max Factor, Dean and Davis Factor, in 1996—generates about $80 million in wholesale net revenue and roughly $140 million in retail sales, according to a source with knowledge of the company's finances.

Sources also speculate that the sale price ranged between $200 million and $300 million.

Smashbox's prowess in fast-growing retail channels, particularly TV shopping, and its presence in open-sell store formats, including Ulta, Sephora and Macy's Impulse Beauty concept, offer Lauder a stronger presence in alternative channels and beef up its holding of venerable makeup artist brands, which include MAC Cosmetics and Bobbi Brown.

 

[..kels*]

Heard that this morning... sooo unfortunate. Time to stock up before they start cutting quality & reformulating everything.

 

[Makeup Emporium]

Apparently Estee Lauder wants to corner the market!!!! I guess the only upside is that Smashbox will start to be available at the CCO's and at the Estee Lauder sales in Markham and NY. So you have to look on the bright side.

 

[anita22]

I'm excited about this - hopefully it will mean better distribution of the brand within the UK.

 

[StarrySim]

Quote:

Originally Posted by Makeup Emporium Apparently Estee Lauder wants to corner the market!!!! I guess the only upside is that Smashbox will start to be available at the CCO's and at the Estee Lauder sales in Markham and NY. So you have to look on the bright side.

LOL this is exactly what I thought of when I first heard the news. I wonder if Smashbox will be available at the fall sale in markham.

 

[equus18]

EL is taking over the entire world it seems. I heard that MAC quality went down after they were acquired by EL (not sure how it was pre-EL).

 

[Twinkle_Twinkle]

While I've also heard that MAC's quality has declined since it's EL buy-out, I never tried a Smashbox product that I felt was stand-out amazing, so.... not much of a loss IMO. In fact, I think it would actually enhance the brand; there might be an increase of new product releases (as has been the case with MAC notably, and probably Bobbi as well) and then Makeup Emporium mentioned them showing up at CCO's now.

 

[crystrill]

My manager said it should probably start showing up at CCO's around December the earliest. Never really been a fan of Smashbox so ehh :/ I wish they still owned Stila!

 

[roLLerGrrL]

Gee, Estee Lauder likes collecting cosmetic & fragrance companies don't they? It's easier listing what they DON'T own or license.

 

[crystrill]

Quote:

Originally Posted by roLLerGrrL Gee, Estee Lauder likes collecting cosmetic & fragrance companies don't they? It's easier listing what they DON'T own or license.

LMAO I know! They own like more than 50% of the Macy's/Bloomie's/Etc makeup floor!

 

[Simply Elegant]

Ugh. I really loved the cheek products and the eyeshadows were pretty good too. Probably not anymore.

 

[BadBadGirl]

Ack! They'll own 90% of makeup after a while.

 

[panther27]

This prolly means it won't be at Sephora anymore,I think.

 

[BadBadGirl]

I hope they leave MUFE alone.

 

[martiangurll]

Aw shucks, I kinda like SB and I am hoping they will make it easier to depot the eyeshadows and fit them in the MAC palettes now.

Having SB in the CCOs could be a plus.

BUT--don't fukc with the Photofinish Primer formula EL! I will be perturbed if you do!

 

[MzzRach]

Lauder will own every line at some point, it seems.

 

[SmokeSignal16]

Quote:

Originally Posted by panther27 This prolly means it won't be at Sephora anymore,I think.

Nah I think they'll stay in there. Clinique is in there and it is part of the semi-monopoly Lauder company lol.

 

[reesesilverstar]

Then I can't wait to see it at the CCO.

 

[crystrill]

I forgot who was telling me this, and please don't quote me on it... but once someone told me that if the company EL acquires is pretty successful on it's own, EL usually doesn't mess around with it's structure, etc. It's only when they're kind of slacking they will change things around?

And whose REALLY to say the MAC quality went down BECAUSE EL bought them? Maybe it would have went down regardless? And EL acquiring MAC probably did more good than harm because correct if I'm wrong, but... ever since EL bought them they have only gotten bigger and better. (Ugh, yeah... you can tell who signs my paycheck! lol)