NEW YORK - Wednesday, October 15th 2014 [ME NewsWire]
Prestige
fragrance and sensory lifestyle brand rooted in craftsmanship and
personalization will complement and strengthen the Company’s portfolio
of brands
(BUSINESS WIRE)-- 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.
Contacts
The Estée Lauder Companies Inc.
Investor Relations:
Dennis D’Andrea,
212-572-4384
or
Media Relations:
Alexandra Trower,
212-572-4430
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