Lauder family seeks US$1B for Estée Lauder Companies shares
Key takeaways
- Leonard Lauder’s family is selling US$1 billion in Estée Lauder shares to settle estate obligations.
- The Lauder family will retain 82% voting control after the sale.
- Estée Lauder continues restructuring amid fiscal 2025 losses and digital expansion efforts.
The family of Leonard Lauder is selling US$1 billion worth of shares in Estée Lauder Companies (ELC). The company will not receive proceeds from the sale, but instead, they will be used to settle Lauder’s estate.
The family of Leonard Lauder, who passed away in June of this year, intends to use the proceeds to assist with settling taxes, debts, and administrative expenses.
Trusts connected to the Lauder family will sell 11.3 million shares of ELC’s Class A Common Stock at US$90 per share. The sale offering will be done through a proposed registered public offering. Each share carries a par value of US$0.01, an accounting designation not related to the market price.
After the company sells new shares, the Lauder family will maintain control of 82% of the voting rights associated with the company’s common stock. The percentage is calculated using the number of shares that existed on October 23.
The selling stockholders and related entities have agreed to a 90-day lock-up period. J.P. Morgan Securities LLC is acting as the sole underwriter.
Several members of the family — including William P. Lauder, Jane Lauder, Gary M. Lauder, and Eric L. Zinterhofer — continue to serve on the company’s board.
Estée Lauder business moves
In August, ELC reported a net loss of US$1.13 billion for fiscal 2025, as restructuring costs, falling sales, and looming tariff pressures weighed on results.
Despite fragrance and digital-driven brands offering bright spots, shares still fell 6% following the reported losses, before closing about 4% lower. Q4 net sales declined 12% year over year to US$3.41 billion.
The company recently partnered with Shopify to modernize its digital technology infrastructure and deliver better omnichannel consumer experiences. ELC also recently launched its flagship brand, Estée Lauder, in the Amazon Premium Beauty online store in Mexico. The move expanded access to the brand’s prestige skin care, makeup, and fragrance portfolio for consumers nationwide.
