Prestige fragrance and sensory lifestyle brand rooted in
craftsmanship and personalization will complement and strengthen the
Company’s portfolio of brands
NEW YORK--(BUSINESS WIRE)--Oct. 15, 2014--
The Estée Lauder Companies Inc. (NYSE:EL) announced today that it has
signed a definitive agreement to acquire Le Labo (“The Lab”), the
high-end fragrance and sensory lifestyle brand with a distinct French
heritage and an emphasis on fine craftsmanship and personalization in
its products and services. Terms of the deal were not disclosed. The
acquisition is expected to close in November 2014.
Founded in 2006 by fragrance industry veterans Fabrice Penot and Eddie
Roschi, Le Labo provides a highly selective assortment of exceptional
fragrance and sensory lifestyle products in minimalistic retail
environments, including the brand’s freestanding stores in New York,
London, Paris, Los Angeles, San Francisco, Tokyo and Hong Kong, as well
as select prestige department stores in global flagship cities, and the
brand’s website. Le Labo has offices in New York and London.
The brand has built a loyal following based on its high-quality products
and unique retail experiences which emphasize exceptional service,
personalized products, and exclusivity. Its current product offerings
include fragrances, body care products and candles, as well as
limited-edition “City Exclusive” scents, available only in certain
boutiques by region.
“Le Labo is the perfect complement to our portfolio of prestige beauty
brands,” said Fabrizio Freda, President and Chief Executive Officer of
The Estée Lauder Companies Inc. “Fabrice and Eddie have built a
beautiful, incredibly unique brand with a focus on craftsmanship,
personalization, and High-Touch services. We look forward to
collaborating closely with them to continue building on their
extraordinary success with discerning global consumers.”
“The Estée Lauder Companies is the ideal home for us and for our brand,”
said Le Labo co-founders Fabrice Penot and Eddie Roschi. “We founded Le
Labo with the guiding principle that the soul of a fragrance comes from
the intention with which it is created, and the attention with which it
is prepared. The Estée Lauder Companies not only understands and
respects the core elements of our business, but also has the resources
to help us continue to grow into a more fully expressed sensory
lifestyle brand. The Company has a strong track record of growing and
nurturing prestige entrepreneurial brands, and we love that they are so
supportive of and committed to our vision.”
“Entrepreneurship is at the heart of our Company’s heritage,” said
William P. Lauder, Executive Chairman, The Estée Lauder Companies Inc.
“One of the leading strengths of our Company is our ability to identify
brands with unique positioning and nurture them to accelerate their
momentum and realize their full growth potential. We are so pleased that
the addition of Le Labo – with its strong growth trajectory as a global
fragrance and sensory lifestyle brand – will continue this legacy.”
Le Labo will be overseen by John Demsey, The Estée Lauder Companies’
Group President, responsible for Estée Lauder, M·A·C, Tom Ford,
Prescriptives, Bobbi Brown, Jo Malone, La Mer, Bumble and bumble,
Smashbox and Aramis & Designer Fragrances.
In this transaction, BNP Paribas served as financial advisor to The
Estée Lauder Companies Inc., while Lowenstein Sandler LLP and Wragge,
Lawrence, Graham & Co. served as legal counsel. Le Labo received
financial advice from Savigny Partners LLP and legal counsel from Barack
Ferrazzano Kirschbaum & Nagelberg LLP.
The forward-looking statements in this press release, including those in
the quoted remarks and those relating to the expectations for the
acquired brand, the impact on the Company's financial results and the
benefits and expected timing of the acquisition, involve risks and
uncertainties. Factors that could cause actual results to differ
materially from those forward-looking statements include current
economic and other conditions in the global marketplace, actions by
retailers, suppliers and consumers, competition, the satisfaction of
closing conditions, the Company's ability to successfully integrate the
acquired business and/or implement its long-term strategic plan, and
those described in the Company's annual report on Form 10-K for the year
ended June 30, 2014.
About The Estée Lauder Companies Inc.
The Estée Lauder Companies Inc. is one of the world’s leading
manufacturers and marketers of quality skin care, makeup, fragrance and
hair care products. The Company’s products are sold in over 150
countries and territories under the following brand names: Estée Lauder,
Aramis, Clinique, Prescriptives, Lab Series, Origins, M•A•C, Bobbi
Brown, Tommy Hilfiger, Kiton, La Mer, Donna Karan, Aveda, Jo Malone,
Bumble and bumble, Darphin, Michael Kors, Flirt!, GoodSkin
Labs, Tom Ford, Coach, Ojon, Smashbox, Ermenegildo Zegna, Aerin Beauty,
Osiao, Marni and Tory Burch.
Source: The Estée Lauder Companies Inc.
The Estée Lauder Companies Inc.
Investor Relations:
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D’Andrea, 212-572-4384
or
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Trower, 212-572-4430