NEWS WORLD
Estée Lauder acquires Tom Ford
for $2.8bn & breaks into fashion US Estée Lauder Companies (ELC) has acquired Tom Ford for US$2.8bn, the beauty brand owner’s biggest deal to date. The maker of MAC and Clinique has licensed Tom Ford’s make-up, fragrances and skin care lines since 2006. ELC forecasted that the cosmetics business will land $1bn in sales in the next few years.
The acquisition includes
Tom Ford’s apparel, accessories and eyewear
Birchbox halts UK sales as Chapter 11 rumours swirl
UK Birchbox has halted all sales from its UK website, amid rumours that the beauty subscription service is preparing to file for Chapter 11. The brand’s website states that Birchbox is facing a host of “unprecedented setbacks that are affecting all our members”.
“We currently are no longer fulfilling orders or shipping subscription boxes,” the statement continued. “We will update our members in due course when we have more information available.”
The beauty brand’s parent company, women’s health start-up FemTec Health, has reportedly sent a letter to creditors mulling the possibility of bankruptcy.
The letter, seen by
WWD, read: “We believe, in the best interests of Birchbox and the entire FMTC family of
companies spanning the US and Europe, a Chapter 11 or some equivalent structure may be necessary.”
8 December 2022
businesses, marking ELC’s first step into fashion – and it fought off competition from Kering to clinch the deal. Fabrizio Freda, CEO of ELC, said the acquisition will “unlock new opportunities” for the Tom Ford brand. Ford, the namesake founder, will step down as CEO and creative lead at the end of 2023. Domenico De Sole, Chairman of Tom Ford and the designer’s long-term business partner, will also
stay with the brand until Ford’s departure.
“I could not be happier with this acquisition as The Estée Lauder Companies is the ideal home for the brand,” said Ford. “They have been an extraordinary partner from the first day of my creation of the company and I am thrilled to see them become the luxury stewards in this next chapter of the Tom Ford brand.”
L’Oréal channels K-beauty with Shihyo joint venture
KOREA L’Oréal has teamed up with Hotel Shilla and Anchor Equity Partners to launch a new luxury skin care brand, Shihyo, via the Loshian third-party joint venture. It marks the first time L’Oréal has brought a beauty brand to market through a joint venture model.
Shihyo, which means ‘the wisdom of time’, is inspired by the Asian concept of 24 seasons. The line-up features 24 ampoules based on different herbal ingredients,
facial cleanser, essence and cream, as well as scalp care products, such as shampoo and conditioner.
The first Shihyo store, called Seoul Garden, will open in coming months at The Shilla Seoul Hotel.
IN BRIEF ZITSTICKA
D2C products company Heyday has acquired ZitSticka for an undisclosed sum. The company said the acne-fighting brand will help grow its personal care business, especially in the high growth category of acne patches. The brand was founded in 2017 by Daniel Kaplan and Robbie Miller.
CAROLINE HIRONS Beauty authority Caroline Hirons has made her long- awaited skin care brand with Skin Rocks. The aesthetician has kickstarted her line with the launch of a retinoid duo. Retinoid 1 and Retinoid 2 are available to purchase now through
skinrocks.com.
HUMANRACE American rapper and entrepreneur Pharrell Williams’ wellbeing brand Humanrace has made its UK debut into luxury department store chain Selfridges.
PZ CUSSONS UNVEILS £325M CREDIT FACILITY WITH B CORP GOALS
UK PZ Cussons has announced a new £325m credit facility to drive forward its B Corp ambitions. The facility’s pricing structure has been linked to the group’s sustainability framework ‘Better For All’, incorporating its environmental, social and governance (ESG) KPIs. These KPIs are focused on achieving B Corp certification across all business units by 2026. A one third reduction in virgin plastics by 2030 and carbon neutrality in operations by 2025 are also among its green goals. It also aims for net zero emissions by 2045 and for
packaging to be 100% recyclable, refillable or compostable by 2030. The group set out its ESG targets earlier this year in its FY22 Annual Report.
SYMRISE Symrise is dealing with the aftermath of a fire at its factory in Colonel Island, US. The fire, which broke out in the early hours of 7 November, is said to have occurred during regular production hours for the manufacture of fragrance ingredients. Risks to the health of Colonel Island site employees and residents, and environmental damage have been ruled out.
ECHA One in four substances recovered from waste have been found to be non-compliant with the EU chemicals regulation REACH. The European Chemicals Agency’s (ECHA) Enforcement Forum said the results of a pilot enforcement project showed 26% of checked substances were in breach of REACH, which stands for the Registration, Evaluation, Authorisation and restriction of chemicals.
cosmeticsbusiness.com
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