Racked is no longer publishing. Thank you to everyone who read our work over the years. The archives will remain available here; for new stories, head over to Vox.com, where our staff is covering consumer culture for The Goods by Vox. You can also see what we’re up to by signing up here.
Is a beauty giant trying to up its indie cred? WWD reports that Estée Lauder has just snatched up Le Labo, one of our favorite brands for candles and fragrances that opened up its first shop on Elizabeth Street eight years ago.
"Le Labo is the perfect complement to our portfolio of prestige beauty brands," company president and CEO Fabrizio Freda told the paper. Brand cofounders "Fabrice [Penot] and Eddie [Roschi] have built a beautiful, incredibly unique brand with a focus on craftsmanship, personalization and high-touch services."
Penot and Roschi echoed Freda's sentiments in a joint statement. "The Estée Lauder Cos. not only understands and respects the core elements of our business, but also has the resources to help us continue to grow into a more fully expressed sensory lifestyle brand."
Since opening in 2006, Le Labo has expanded to freestanding stores in cities from Los Angeles to Paris to Tokyo, and is featured in high-end department stores like Saks Fifth Avenue and Harrod's. They'll be under the supervision of the same Estée Lauder executive that oversees Smashbox, M.A.C Cosmetics, Bobbi Brown, Bumble and bumble, and more.
Both parties declined to disclose the financial details of this arrangement, but it's estimated that with Le Labo's current annual profits running up to $30 million, Estée Lauder could have paid twice as much for the acquisition.