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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.
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.