The Estée Lauder Companies Inc. (NYSE: EL) announced today that it has acquired By Kilian, the Paris-based prestige fragrance brand that embodies timeless sophistication and modern luxury. Terms of the deal were not disclosed.
Founded in 2007 by Kilian Hennessy, By Kilian has built a passionate global following with its distinctive emphasis on sensuous olfactive storytelling. Sold in more than 40 countries worldwide – primarily in North America, Europe and the Middle East – through immersive freestanding stores, select prestige department stores and perfumeries, By Kilian offers an exclusive “wardrobe” of scents that reflect Mr. Hennessy’s deep-rooted legacy of luxury and creativity. By Kilian’s current product offerings include fragrances, candles and other accessories, as well as exclusive collections available in certain regions. Elements of the brand’s packaging – including perfume bottles and candleholders – are meant to be keepsakes, which is reflective of Kilian’s philosophy that true luxury should not be disposable.
“By Kilian is a perfect complement to our portfolio of prestige fragrances,” said Fabrizio Freda, President and Chief Executive Officer of The Estée Lauder Companies Inc. “Kilian has built a beautiful and sumptuous brand that elevates the art of perfume creation with elegance and uncompromising luxury. This acquisition gives our Company a strategic opportunity to continue to build upon our leadership in ultra-luxury fragrances. We are very excited to work closely with Kilian and the entire By Kilian team to continue building on the brand’s terrific success.”
“I could not imagine a better home for my brand,” said By Kilian founder and CEO Kilian Hennessy. “The Estée Lauder Companies not only understands the philosophy behind By Kilian – which is to bring perfumery back to the level of luxury that it enjoyed in the early 20th century – but also has the resources and support to help By Kilian continue to strategically grow by category, region and distribution. The Company has an incredible track record of nurturing entrepreneurial brands, and I’m thrilled to be partnering with them.”
“Kilian’s heritage of sophistication and luxury is a terrific match for The Estée Lauder Companies,” said William P. Lauder, Executive Chairman, The Estée Lauder Companies Inc.
“One of our leading strengths is the ability to identify brands with unique positioning and nurture them to realize their full growth potential. We are so pleased to partner with Kilian to continue this legacy, and we welcome him and his team to our family.”
John Demsey, Executive Group President, The Estée Lauder Companies Inc., will add By Kilian to his portfolio, while continuing to oversee Clinique, M·A·C Cosmetics, Tom Ford Beauty, Prescriptives, Bobbi Brown, Jo Malone London, Smashbox, Aramis & Parfums Frédéric Malle, GLAMGLOW.
In this transaction, BNP Paribas served as financial advisor to The Estée Lauder Companies Inc., while Lowenstein Sandler LLP, Wragge Lawrence Graham & Co. LLP and Arendt & Medernach served as legal counsel. By Kilian received financial advice from Michel Dyens & Co. and legal counsel from Skadden, Arps, Slate, Meagher and Flom LLP and CMS Bureau Francis Lefebvre.
The forward-looking statements in this press release, including those in the quoted remarks and those relating to the expectations for the acquired brand and the benefits of the acquisition, involve risks and uncertainties. Factors that could cause actual results to differ materially from those forward-looking statements include current economic and other conditions in the global marketplace, actions by retailers, suppliers and consumers, competition, the Company’s ability to successfully integrate the acquired business and/or implement its long-term strategic plan, and those described in the Company’s annual report on Form 10-K for the year ended June 30, 2015.
About The Estée Lauder Companies Inc. The Estée Lauder Companies Inc. is one of the world’s leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products. The Company’s products are sold in over 150 countries and territories under brand names including: Estée Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, Tommy Hilfiger, M·A·C, Kiton, La Mer, Bobbi Brown, Donna Karan New York, DKNY, Aveda, Jo Malone London, Bumble and Bumble, Michael Kors, Darphin, Tom Ford, Smashbox, Ermenegildo Zegna, AERIN, Marni, Tory Burch, RODIN olio lusso, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW and By Kilian.