Estee Lauder sells stila cosmetics brand
Stila Corp, an affiliate of Florida-based equity firm Sun Capital
Partners, in a move that aims to concentrate on the more profitable
brands in its portfolio.
Estee Lauder first bought up the brand back in 1999, but it has failed to shine as a dominant brand. As was the case when the brand was first purchased, the company has not revealed any terms of the deal, including the price.
Sila brand is a prestige brand of color cosmetics used by make-up artists. It is currently sold in up-market department stores in 13 countries, and in travel retail stores around the world.
However, the sale is a mutually beneficial deal, and Stila Corp will be run by a management team led by Jane M. McKellar, the former managing director of Elizabeth Arden in Australia.
The deal also means that operations of stila are expected to continue, with the new management team assuming responsibility for the brand, following its sale on April 10. During the hand-over Estee Lauder says it will provide for certain transition services.
The brand was officially discontinued by Estee back in September and then put up for sale in October. The sale of the brand aims to reignite in a business environment where it is not going head-to-head with other similar brands.
Estee Lauder said it remains committed to growth in the makeup artist-brand category with its MAC and Bobbi Brown brands, which will be given renewed focus following the sale of stila. This will also help it towards achieving the longer business plans and strategic objectives of a more refined portfolio.
Although the charges relating to the transaction have not been determined, the company said that it is expecting that they will be absorbed as part of its third quarter, which will be published early next month.
William Lauder, Estee Lauder CEO said that the transaction boded well for the future of the brand, adding "we are pleased that our company has taken this important step in our drive to optimize our portfolio of brands."
