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| Image Source: fashionista.com |
After inking a deal to acquire Le Labo just a few weeks ago, Estée Lauder has added one more blue chip brand to its portfolio: Rodin Olio Lusso,
the skincare company founded by stylist Linda Rodin whose flagship face
oil has been winning over beauty aficionados since 2007. Not only is it
Estée Lauder's second acquisition in the last month, but it's the
second since the brand acquired Smashbox in 2010, ending a significant M&A dry spell.
The
terms of the deal have not been disclosed, nor did a rep for the
company respond to a question about Rodin Olio Lusso's sales figures
over the last few years. Le Labo, which occupies a similarly
known-but-niche spot in the beauty industry, reportedly generates $20 million to $30 million in sales each year.
Le
Labo and Rodin Olio Lusso share a certain cushy status. Favorites of
fashion and beauty editors, they seem niche but are ubiquitous in the
press and are expensive but not as unaffordable as a brand like La Mer
(also an Estée Lauder portfolio company). While Le Labo operates its own
mixologist-type shops, Rodin Olio Lusso has a home at stores like
Barneys, Colette and Liberty. Of course, it helps that Linda Rodin has
been in the fashion industry as a model and stylist for quite a long
time -- and that at 65, she is the pinnacle of aging with style.
As
Estée Lauder President and CEO Fabrizio Freda put it in a statement,
"Rodin Olio Lusso is the ultimate ‘insider’ beauty brand," noting that
the team believes "it has the potential to be a high-growth global skin
care brand that strategically enhances our portfolio." Basically:
There's a lot of brand equity happening here, but not too much scale.
Yet.
If this shopping spree continues, we'll be watching to see who Estée Lauder poaches next.
The recent acquisitions of Estée Lauder Companies further strengthen the conglomerate’s reign over the global beauty market, something that William Lauder vowed to uphold when he took the helm as executive chair. Learn more about the growing family of ELC here.
