ME NewsWire/Business Wire
NEW YORK - Wednesday, October 15th 2014
Prestige fragrance and sensory lifestyle brand rooted in craftsmanship and personalization will complement and strengthen the Company’s portfolio of brands
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.
The Estée Lauder Companies Inc.