With an eye on the growing Prestige makeup category and a focus on the Millennial population, The Estée Lauder Companies Inc. (ELC) last month announced an agreement to acquire girly, cult brand Too Faced for a purchase price of approximately $1.45 billion—the company’s largest brand acquisition ever. The deal is expected to strengthen Lauder’s leadership position in the fast-growing prestige makeup category globally, increase ELC’s consumer reach in the specialty-multi channel, and win with Millennials. Too Faced is the latest in a series of brand acquisitions for Lauder, including Le Labo (2014), Rodin Olio Lusso (2014), Editions de Parfums Frédéric Malle (2015), GLAMGLOW (2015), By Kilian (2016), and BECCA Cosmetics (October 2016).  

Launched in 1998 by “cosmetics visionaries” Jerrod Blandino and Jeremy Johnson, and currently led by Johnson, Blandino and CEO Eric Hohl, Too Faced offers bold products for the eyes, face and lips. Known for its high-quality formulas, catchy product names and distinctive packaging, Too Faced creates an emotional connection with consumers and has developed a strong following, especially among Millennials. The brand has more than 7.3 million Instagram followers and is among the top eight makeup brands in the specialty-multi channel in the United States.  Lauder says Too Faced has experienced impressive growth over the past several years, and is expected to reach more than $260 million in net sales in 2016. This represents growth of more than 70% for the year and 60% compounded annually over the past three years.