Estée Lauder to Acquire Too Faced for $1.45 Billion
Cosmetics maker Estée Lauder Companies, Inc. has agreed to buy makeup brand Too Faced for about $1.45 billion in its biggest-ever deal. Founded in 1998 by Jerrod Blandino and Jeremy Johnson, Too Faced sells its products at retailers such as Sephora, Debenhams and Macy's. Too Faced is expected to have sales of $270 million in 2016, representing a growth of more than 70 percent for the year, Estée Lauder said on Monday. Estée Lauder, which is buying Too Faced from private equity firm General Atlantic LLC, said it expects the deal to close in December.
Total Retail's Take: Too Faced is one of the many brands that have sprung up over the past few years to cash in on millennial shoppers. Its products, such as Better Than Sex mascara and Melted Matte lipsticks, are particular favorites of millennials. As such, the acquisition is a good move for Estée Lauder, which, like many traditional retail and beauty brands, is hoping to capture that market as well.