Estee Lauder to acquire Smashbox Beauty Cosmetics
18 May 2010
Estee Lauder Companies Inc, the upmarket cosmetics and perfume manufacturer says it is acquiring Smashbox Beauty Cosmetics Inc, (SBC), a privately held, photo studio-inspired prestige cosmetics company for an undisclosed sum.
Los Angeles-based SBC was founded in 1996 by two great-grandsons of the makeup legend Max Factor, brothers Dean and Davis, 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.
The SBC brand, with its unique equity positioning, is a strategic complement to the New York City-based Estee Lauder Companies' portfolio of leading prestige cosmetic brands.
Estee Lauder Companies, which had 2009 revenues of $7.3 billion, said in a statement that SBC's significant presence in assisted open-sell environments and specialty distribution channels will expand The Estee Lauder Companies' product offerings and reach new and younger consumers in these high-growth prestige channels.
Additionally, the Estee 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.
