While the industry is focused on whether the Estée Lauder Cos./Puig deal will go through, the former is quietly edging closer to another deal — or deals.
WWD has learned that final bids are in for Too Faced, Smashbox and Dr. Jart and the process could be completed in a matter of weeks. The brands were originally marketed together, but the strategy was altered, with the makeup brands later being offered together and Dr. Jart by itself.
According to sources, there was at least one interested party looking at all three brands and a handful interested in the color brands. A few were also looking at just acquiring Dr. Jart.
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The Estée Lauder Cos. declined to comment.
After implementing a new strategy to turn around the beauty company’s fortunes, chief executive officer Stéphane de La Faverie revealed last year he is assessing the group’s portfolio.
This comes as merger talks continue between Puig, the Spanish fragrance and fashion company, and the Estée Lauder Cos., which they first revealed in filings on March 23.
If they do come together, the new beauty powerhouse would have just over $20 billion of estimated combined sales, making it the largest premium beauty player worldwide.
“As of today, we can confirm that conversations are ongoing, but no final decision has been made yet,” said Jose Manuel Albesa during his first earnings call last month with financial analysts and journalists since becoming Puig chief executive officer on March 17.
The Lauder portfolio includes Estée Lauder, Clinique, Deciem, Bobbi Brown and Tom Ford, among others, driving sales last year of $14.7 billion, a decline of 3 percent.
And Puig’s portfolio includes the fragrance and fashion brands Rabanne, Carolina Herrera, Jean Paul Gaultier, Nina Ricci and Dries Van Noten. There’s also Charlotte Tilbury, plus niche fragrance brands such as Byredo, Penhaligon’s and L’Artisan Parfumeur, as well as a dermocosmetics activity. Puig recorded net sales of 5.04 billion euros last year.