Estee Lauder has announced plans to acquire Smashbox Beauty Cosmetics, adding that it plans to expand the brand both in the US and overseas. No financial details of the deal, which is expected to close in July 2010, were revealed. The deal is subject to regulatory approval.
LA-based Smashbox generates most of its sales in the US, and was founded in 1996 to meet the needs of makeup artists working on photo shoots. The brand was one of the first cosmetics companies to embrace digital and social media, and has a website that features instructional videos. Smashbox's closest competitor is MAC, also owned by Estee Lauder.
Estee Lauder said the deal will add to earnings in fiscal 2011, before transaction and integration costs. Fabrizio Freda, CEO of Estee Lauder, said the brand “has a lot of capability to attract from the mass competitors”.