Estee Lauder to acquire Becca Cosmetics in estimated $200 million deal

Estee Lauder to acquire Becca Cosmetics in estimated $200 million deal

The Estee Lauder Companies, Inc has agreed to buy Becca Cosmetics in a deal believed to be valued at $200 million dollars as reported by Business of Fashion.

Founded fifteen years ago, Becca Cosmetics is known largely for catering to a mostly non-Caucasian client base. It has a huge following especially in Europe and North America. Estee Lauder, on the other hand, has been doing remarkably well in the cosmetics front especially in the Asia-Pacific region. Becca Cosmetics can leverage Estee Lauder’s global reach to grow its brand internationally. With predicted sales of $80 million dollars for the year 2016, all being well, Becca Cosmetics is expected to go from strength to strength. With diversity being the buzzword for a lot of businesses, Estee Lauder’s purchase can be seen as a way of not only widening its client base but also a way of improving its profitability.

Becca Cosmetics has been searching for a buyer for some time. Earlier this year there murmurings that it would go down the venture capital route. However once that plan fell through Estee Lauder was in prime position to propose the current offer which Becca Cosmetics appears to have agreed to.

Becca Cosmetics’ President and Chief Executive Robert DeBaker and its Chief Financial Officer James MacPherson are expected to stay on with the company.

Estee Lauder to acquire Becca Cosmetics in estimated $200 million deal