Blog Coverage Estee Lauder Set to Acquire Too Faced in a $1.45 Billion Merger

Upcoming AWS Coverage on Nu Skin Enterprises Post-Earnings Results

LONDON, UK / ACCESSWIRE / November 16, 2016 / Active Wall St. blog coverage looks at the headline from The Estee Lauder Companies Inc. (NYSE: EL) as the company announced on November 14, 2016, that it has entered into a definitive acquisition agreement with the playful makeup brand, Too Faced, which will add products such as Better than Sex mascara and Melted Matte lipsticks to its portfolio. Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.

One of Estee Lauder Cos’ competitors within the Personal Products space, Nu Skin Enterprises, Inc. (NYSE: NUS), reported its Q3 2016 results on November 03, 2016. AWS will be initiating a research report on Nu Skin Enterprises in the coming days.

Today, AWS is promoting its blog coverage on EL; touching on NUS. Get all of our free blog coverage and more by clicking on the link below:

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Too Faced has diversified offerings across the makeup segment and is one of the fastest growing makeup brands in specialty-multi and in terms of online presence. Estee Lauder Cos. aspires to bank on the firm’s consumer reach to solidify its presence in the rapidly growing prestige makeup category.

Breaking down the merger

The Estee Lauder Companies is one of the leading manufacturers and marketers of several makeup and wellness products. With a pan-world presence in more than 150 countries, it delivers solutions across makeup, fragrance skincare, and hair products.

Too Faced, on the other hand, was launched in 1988 and offers diversified cosmetic products for the eyes, face, and lips. It prefers non-conventional marketing approach where, it has a dominating presence on social media platforms through which it delivers makeup solutions by drawing inspiration from fashion and pop culture.

Estee Lauder has recently been investing considerably in different makeup brands. With the acquisition of BECCA Cosmetics and this merger with Too Faced, it is quite clear that Estee Lauder has viewed several opportunities in the makeup and cosmetics sector, and the company aspires to expand its product portfolio to successfully gain customers.

Too Faced reported a 70% gain for the year and is expected to reach more than $270 million in net sales for 2016. It has been a part of the growth equity firm, General Atlantic since 2015. The Estee Lauder/ Too Faced merger will generate $1.46 billion and is expected to close by December 2016.

The Makeup Portfolio

This acquisition, which is the biggest one in Estee Lauder’s acquisition history, is set to bring a new segment of millennials to its product’s portfolio. The global beauty business is worth $382 billion and Estee Lauder is set to mark its presence and dominate the segment after a period.

Estee Lauder closed the acquisition of BECCA Cosmetics on November 14, 2016. BECCA Cosmetics boasts a unique product-line with the flagship foundations offering more than twenty shades. Estee Lauder, on the other hand, has some immensely popular products at its disposal. Too Faced’s Better than Sex mascara was an instant hit when it was launched and has sold over 2.5 million units since its inception.

Both of these acquisitions are Estee Lauder’s initiatives to lead the makeup segment and bring in all-new, fashionable, pop-culture inspired, and social media-based consumer base to purchase its products.

“The entrepreneurial spirit at the heart of The Estée Lauder Companies is evident in the remarkable success of Too Faced,” said William P. Lauder,

Executive Chairman of The Estée Lauder Companies in a recent statement.

Stock Performance

On Tuesday, November 15, 2016, Estee Lauder’s shares were marginally up 0.19% from its previous close of $77.60, finishing the day at $77.75. A total volume of 2.80 million shares exchanged hands, which was higher than the 3 months average volume of 1.87 million shares. The stock is trading at a PE ratio of 26.54 and has a dividend yield of 1.54%.

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