Major beauty news this morn, gals. Straight from my inbox:
Estée Lauder announced today that it has signed a definitive agreement to acquire Smashbox Beauty Cosmetics. The acquisition is expected to close in July 2010, subject to certain conditions, including regulatory approval. While terms of the deal were not disclosed, the Company said that the transaction is expected to be accretive to earnings in fiscal year 2011, before transaction and integration costs.
The Smashbox brand, with its unique equity positioning, is a strategic complement to The Estée Lauder Companies’ portfolio of leading prestige cosmetic brands. Smashbox’s significant presence in assisted open-sell environments and specialty distribution channels will expand The Estée Lauder Companies’ product offerings and reach new and younger consumers in these high-growth prestige channels. Additionally, The Estée 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.
I’m excited to see how this pans out. It’s a fantastic coup for EL and I wonder what (if any) changes are ahead for this LA studio-style makeup brand.