US cosmetics maker Estée Lauder snapped up the beauty products brand Too Faced, beloved by the younger demographic, for US$1.45 billion in its biggest acquisition to date.
Through this acquisition, the group expects to strengthen its leadership position in the fast-growing prestige makeup category globally, and to increase its consumer reach in the specialty-multi channel, and win with millennials. Other big players in the cosmetics market have been rolling out similar strategies. Among them, France’s L’Oréal has been picking up hot brands such as Urban Decay, NYX and IT Cosmetics.
Launched in 1998, the brand offers a line of cosmetic products for the eyes, face and lips. Too faced, one of the fastest growing makeup brands in specialty-multi and online, is extremely active on social media. It has a massive following on Instagram, and offers makeup tutorials on YouTube
“Beloved for its high-quality, innovative formulas, irreverent product names and distinctive packaging, Too Faced creates an emotional, authentic connection with consumers and has developed a strong following and built a vibrant community among millennials who are passionate about social media, fashion and pop culture,” highlights the Estée Lauder group.
Too Faced also uses edgy names for products, such as "better than sex" mascara, and quirky packaging. The brand has experienced impressive growth over the past several years, and is expected to reach more than 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.
The acquisition is expected to close in December 2016.
