Estée Lauder receives final bids for Too Faced, Smashbox and Dr. Jart+

Estée Lauder Companies (ELC) has reportedly received the final bids for the potential offloading of Too Faced, Smashbox, and Dr. Jart+ to interested parties. Reports reveal that the process of the sale could possibly be completed within the next few weeks.

The three brands were originally being considered as a package deal, but the strategy was adapted in the interests of the potential buyers. The US-based makeup companies, Too Faced and Smashbox, are currently said to be offered together, and the sale of K-beauty’s Dr. Jart+ is being considered alone.

WWD reports that at least one interested party is looking at buying all three brands, while others are eyeing them separately. While the bid amounts have not yet been disclosed, Personal Care Insights previously reported that the combined price is estimated in the low nine figures (US$100 million to US$199.99 million). 

Financial recovery plan

ELC showed growth in its Q3 FY 2026 results, signaling a rebound after consecutive years of losses.

The Too Faced and Smashbox brands were acquired during ELC’s major acquisition phase in the 2010s and have been part of the beauty conglomerate’s portfolio for years. However, the brands’ legacy did not prove lucrative. ELC reported its third consecutive year of losses with a US$1 billion loss and a 12% net sales decline year-over-year in its 2025 Q4 financials.

The company cited sales declines, restructuring, and tariff pressures as the source of the losses and deferred to its Profit Recovery and Growth Plan (PRGP). The plan was instated to help alleviate the US$1.13 billion loss it reported for fiscal 2025 — a loss that ELC anticipated may escalate through 2026.

The company’s finances have demonstrated recovery, with its Q3 report for FY 2026 showing double-digit net sales growth in its Fragrances division. The year-to-date profitability raised the company’s full-year fiscal outlook, expecting to bring a restoration of organic sales growth and expansion of adjusted operating margin for the first time in four years.

Net sales grew in three out of four geographic regions and were led by mainland China. The company’s multi-year vision, Beauty Imagined, launched in February 2025, is reported to be on track, and its PRGP is ahead of previous projections.

Dr. Jart+ is reportedly being eyed for acquisition by South Korean private equity firm PTA Partners in collaboration with domestic strategic investors, according to Seoul Economic Daily. The dermacosmetics brand has been struggling financially since ELC’s acquisition in 2019, with industry experts saying that ELC failed to keep up with industry trends and maintain domestic operations. If acquired by PTA, the brand would return to the K-beauty infrastructure after seven years.

Estée Lauder investments

In other ELC financial moves, the company recently invested in 111Skin to expand its portfolio in luxury clinical skin care, focusing on post-procedure recovery. The minority investment comes as the industry is adapting to a rising demand for recovery care amid the increasing popularity of aesthetic treatments.

The investment aligns with ELC’s continued focus on science-driven innovation, as 111SKIN’s advanced NAC Y2 technology and commitment to clinical-led product development reflect consumers’ growing preference for high-performance and preventative skin care. The move is one of many recent business plays by the beauty conglomerate.

Puig trouble

ELC is reportedly pursuing a merger with Puig, who is facing workforce challenges due to pay disputes.

The update on the potential sale of the three brands comes as ELC continues its merger plans with the Spanish beauty group Puig, owner of the Rabanne and Jean Paul Gaultier beauty lines. The merger could create a US$40 billion global beauty powerhouse combining major brands.

Last month, ELC was reported to be arranging €5 billion (US$5.84 billion) in funding for its potential merger with Puig.

The beauty conglomerate was said to have commissioned investment banking firm JP Morgan to structure a financing package to fund its acquisition. Following the alleged report, Puig’s stock rose by over 5%.

If finalized, the merger would see the uniting of beauty heavy-hitters like Carolina Herrera, Clinique, Jean Paul Gaultier, Charlotte Tilbury, and MAC Cosmetics.

While merger talks are reportedly ongoing, Puig appears to be having trouble at home. The company’s worker union will hold a 24-hour strike at its Vacarisses cosmetics factory near Barcelona, Spain, on May 20.

The trade union CGT has scheduled the strike, and it will span three shifts in a Puig cosmetics factory. The tension stems from pay discrepancies among workers at the company, and accuses Puig of having an inadequate response to the issue.

In addition to stopping work, the union plans to protest outside Puig’s corporate headquarters and warn that further action is on the table if a satisfactory solution is not presented by the company.

The Puig strike comes in close succession to a recent Kimberly-Clark warehouse fire in California, US. The fire, allegedly started by a third-party worker who stated that he was protesting low wages, caused upwards of US$600 million in damages. The defendant in the case has pleaded not guilty and faces up to 20 years in federal prison if convicted.