Estée Lauder acquires US skin care player GlamGlow

Estée Lauder Companies is to acquire California-based skin care player Glamglow in a deal that is expected to close at the end of this month.

The deal means that Estée Lauder rounds off an acquisitive year in which it bought up a number of luxury skin care and fragrance players in the US in an effort to further expand its footprint.

The brand was only founded in 2010 by Glenn and Shannon Delimore, but thanks to its exposure in the trend-setting Hollywood area and a raft of global awards, the brand has gained a lot of exposure that has all helped to drive its popularity.

High-end facial masks

The line is marketed as a high-end treatment in the form of skin masks for men and women of all ages and skin types that target a ‘spotlight ready glow’ as the end result.

The product line was marketed as a treatment to the stars of the Hollywood circuit, helping to trigger a popularity that has culminated with the line being stocked in high profile multi-channel retailers such as a Sephora and Douglas, and high-end select stores such as Selfridges and Bloomingdales.

There are further plans to expand the retail distribution in 2015, starting with the sale of the products in Nordstrom this month.

An opportunity to grow the brand

“Glamglow is a top performer in specialty channels and effectively engages its devoted fans across digital platforms. Its unique focus on facial masks strategically complements our current prestige skin care offerings,” said Fabrizio Freda, Estée Lauder president and CEO.

The Glamglow founders said in a press statement to make the deal official that it represented the scale and vision that it needed to help bring the brands to the next level of their development.

The Glamglow portfolio currently includes five mud-based fascial skin care masks products that are formulated using the company’s Teaoxi leaf-steeping technology to brighten, hydrate and clear the skin.

The fourth acquisition in six months

Estée Lauder rounded off an acquisitive six month period with the Glamglow acquisition, having also acquired Le Labo prestige fragrances, Rodin olio luss skin oils, Frederic Mall fragrances and in the period July through to November.

The company had made it known earlier on in the year that it wanted to hit the acquisition trail when CFO Tracey Thomas Travis said that M&A activity would be a high priority for the company.

Whether or not that activity will continue into 2015 remains to be seen, but the luxury cosmetics segment as a whole is likely to remain a focus for further industry activity as it continues to drive higher margins and significant growth.