NEW YORK, United States — Cosmetics maker Estée Lauder Companies, Inc agreed to buy makeup brand Too Faced for about $1.45 billion in its biggest-ever deal, adding products such as Better than Sex mascara and Melted Matte lipsticks that are popular among millennials.
Founded in 1998, Too Faced is one of the many growth-oriented brands that have sprung up to cash in on the struggles of some older rivals to capture the interest of millennial shoppers.
Irvine, California-based Too Faced is expected to have sales of more than $270 million in 2016, representing a growth of more than 70 percent for the year, Estée Lauder said on Monday.
Too Faced, whose co-founders Jerrod Blandino and Jeremy Johnson started their careers behind the counters of the Estée Lauder brand, also sells its products at retailers such as Sephora, Debenhams and Macy's Inc.
Estée Lauder, which is buying Too Faced from private equity firm General Atlantic LLC, said it expected the deal to close in December.
Earlier this month, Estée Lauder, the maker of Clinique skin care and Smashbox makeup products, reported quarterly sales that missed estimates as fewer shoppers visited department stores in the United States.
Estée Lauder's financial advisers were Evercore and BNP Paribas while Too Faced was advised by Goldman Sachs and Jefferies LLC.
By Narottam Medhora and Arunima Banerjee; editor: Sriraj Kalluvila.