Estee Lauder to acquire perfume maker Le Labo

The Estée Lauder Companies Inc. (EL) announced last week that it has signed a definitive agreement to acquire Le Labo (“The Lab”), the high-end fragrance and sensory lifestyle brand with a distinct French heritage and an emphasis on fine craftsmanship and personalization in its products and services. Terms of the deal were not disclosed. The acquisition is expected to close in November 2014.

Le Labo was founded in 2006 by fragrance industry veterans Fabrice Penot and Eddie Roschi, and provides a highly selective assortment of exceptional fragrance and sensory lifestyle products. With offices in New York and London Le Labo has stores in New York, London, Paris, Los Angeles, San Francisco, Tokyo and Hong Kong, as well as select prestige department stores in global flagship cities.

The brand has built a loyal following based on its high-quality products and unique retail experiences which emphasize exceptional service, personalized products, and exclusivity. Its current product offerings include fragrances, body care products and candles, as well as limited-edition “City Exclusive” scents, available only in certain boutiques by region.

Fabrizio Freda, President and Chief Executive Officer of The Estée Lauder Companies Inc said, “Le Labo is the perfect complement to our portfolio of prestige beauty brands,” “Fabrice and Eddie have built a beautiful, incredibly unique brand with a focus on craftsmanship, personalization, and High-Touch services. We look forward to collaborating closely with them to continue building on their extraordinary success with discerning global consumers.” The portfolio of Estee Lauder beauty brands include MAC Cosmetics, Jo Malone, La Mer, Bumble and Bumble, Bobbi Brown, Tom Ford and Smashbox (its most recent acquisition, in 2010).

Along with annual sales of $20 to $30 million, Le Labo is already operating on an international scale. But with the backing of a major beauty company, things will certainly dial up in a big way in the coming years. With Estée Lauder's sales hitting a record $10.79 billion in 2014, it looks like the perfumer will be in good hands.