Cosmetics maker Estée Lauder Companies Inc. (EL - Free Report) entered into an agreement to take over skin care brand GLAMGLOW, to boost its prestige skin care portfolio. Although terms of the deal were not disclosed, Estée Lauder expressed its desire to close the deal in Jan 2015.
Founded in 2010, GLAMGLOW is a Hollywood-inspired prestige skin care brand which offers fast-acting treatment masks. Although the brand primarily dominates the Hollywood sets, it is now available in global specialty-multi channels and select high-end department stores.
The acquisition is expected to help the company enrich its portfolio with the popular five easy-to-use mud-based facial skin mask products of GLAMGLOW, namely, the original GLAMGLOW product, Youthmud, Supermud, Thirstymud and Powermud. Moreover, in Jan 2015, GLAMGLOW will launch a range of ‘mud to foam’ daily cleansers.
Post acquisition, GLAMGLOW will be managed by The Estée Lauder Companies’ Group President, John Demsey, who also overlooks the operations of brands like Estée Lauder, M·A·C, Tom Ford, Prescriptives, Bobbi Brown, Jo Malone, La Mer, Bumble and bumble, Smashbox and Aramis & Designer Fragrances, Le Labo and RODIN olio lusso.
Estée Lauder is one of the world's leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products that are sold in over 150 countries. The company has been consistently driving decent earnings backed by product innovation and strategic initiatives.
Moelis & Company LLC became the financial advisor to Estée Lauder and Lowenstein Sandler LLP served as legal counsel for the deal.
Stocks to Consider
Estée Lauder currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks to consider in the cosmetics industry include Helen of Troy (HELE - Free Report) sporting a Zacks Rank #1 (Strong Buy). Other stocks in the retail sector worth considering include Columbia Sports Inc. (COLM - Free Report) and G-III Apparel Inc. (GII - Free Report) also carrying the same rank as Helen of Troy.