Estée Lauder Targets Millennials With Too Faced Deal

In mid-November 2016, Estée Lauder completed the acquisition of Becca Cosmetics and also announced its intention to acquire US company Too Faced, a fast-growing makeup brand that sells in specialty and online channels, for just under $1.5 billion. Too Faced, and Becca, will expand the company’s presence in color cosmetics targeting millennials. A note from Trefis listed some possible reasons for the Too Faced deal, including the observation that makeup is a key growth driver for Estée Lauder. With a CAGR of 60% in the last three years, Too Faced has also been growing strongly, its channels also provide Estée Lauder with alternative distribution options, and its appeal among millennials is also attractive. Estée Lauder also expects to extend the brand globally to maximize its growth potential.