Estée Lauder acquire cult beauty brand Le Labo
Cool turned corporate?
On Tuesday, cosmetics giant Estée Lauder announced that it has reached a "definitive agreement" to purchase Le Labo, in a deal that is expected to finalise in November.
The cult, cooler-than-cool beauty brand achieves annual sales of $20 to $30 million per year according to recent reports, and has boutiques in New York, London, Paris, San Francisco, Tokyo and Hong Kong as well as headquarters in New York and London. Suffice to say it is an international brand, but with the backing of a beauty corporate giant the sky will now be the limit.
Whether Estée Lauder will be able to grow Le Labo and maintain it's organic, cornershop spirit only time will tell. Estée Lauder CEO Fabrizio Freda said in a statement that will be the "perfect complement" to it's crown of beauty gems – which include Jo Malone, MAC Cosmetics, Bumble and Bumble, La Mer, Tom Ford, Bobbi Brown, and Smashbox. The cosmetics pioneers reached a milestone for sales this year – with a whopping $10.79 billion reported for 2014 so far.
It is not yet known how involved Le Labo founders Fabrice Penot and Eddie Roschiboth will still be after the acquisition, but thankfully the pair do have corporate experience under their belts – as they first met whilst working at Estée Lauder's competitor L'Oreal.