SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
November 18, 1997
THE ESTEE LAUDER COMPANIES INC.
(Exact Name of Registrant as Specified in its Charter)
DELAWARE 1-14064 11-2408943
(State or Other (Commission (I.R.S. Employer
Jurisdiction File Number) Identification Number)
of Incorporation)
767 FIFTH AVENUE
NEW YORK, NEW YORK 10153
(Address of principal executive offices) (zip code)
(212) 572-4200
(Registrant's telephone number, including area code)
NOT APPLICABLE
(Former name or former address, if changed since last report)
NYFS11...:\90\44090\0019\1989\SECN147T.340
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ITEM 5. OTHER EVENTS.
The Registrant announced on November 19, 1997 that it had entered
into an agreement with Aveda Corporation to purchase Aveda Corporation for a
cash purchase price of $300 million.
A copy of the Registrant's press release dated November 19, 1997 is
filed as Exhibit 99 to this Report.
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ITEM 7. EXHIBITS
99. Press Release issued by the Registrant on November
19, 1997.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE ESTEE LAUDER COMPANIES INC.
By: /s/ Fred H. Langhammer
---------------------------------
Name: Fred H. Langhammer
Title: President and Chief Operating Officer
Dated: November 19, 1997
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EXHIBIT INDEX
Exhibit No. Description
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99. Press Release issued by the Registrant on November 19, 1997.
THE NEWS
ESTEE Contact:
LAUDER Investor Relations:
COMPANIES INC. Dennis D'Andrea
(212) 572-4384
767 Fifth Avenue
New York, NY 10153 Media Relations:
Mary Carroll Linder
(212) 572-4430
Kerri Boersma
Aveda Corporation
(612) 783-4259
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FOR IMMEDIATE RELEASE
THE ESTEE LAUDER COMPANIES INC. TO ACQUIRE AVEDA CORPORATION,
LEADING HAIR AND BEAUTY COMPANY
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NEW YORK, NY, NOVEMBER 19, 1997 - The Estee Lauder Companies Inc. (NYSE:EL) and
Aveda Corporation announced today that they have signed an agreement by which
the Estee Lauder Companies will purchase Aveda Corporation, a premium
manufacturer and marketer of pure and natural hair, skin, makeup and body care
products, which use the science of flower and plant aromatherapy.
The all cash purchase price is $300 million. The transaction is subject to
certain conditions, including expiration of the Hart-Scott-Rodino waiting
period, and is expected to be completed in early December.
Founded in 1978 by Horst Rechelbacher, Aveda Corporation is a leader in the U.S.
prestige hair care industry and among the fastest growing companies in this
segment. The company's products are sold primarily through distributors to about
30,000 professional salons worldwide. Some 2,000 of these are Aveda's concept
salons which sell Aveda products exclusively. Aveda products are also sold in
over 130 Aveda lifestyle stores and a limited number of department stores.
Predominantly marketed in the U.S., Aveda products are available in certain
international markets, including the U.K., Australia and Italy.
Commenting on the agreement, Leonard A. Lauder, Chairman and Chief Executive
Officer of The Estee Lauder Companies Inc., said, "The acquisition of Aveda is
another step in our strategy of strengthening our position as a leader in the
global beauty business. We are particularly attracted to three factors: Aveda's
strong position in the premium hair care segment, which is a rapidly growing
category; its distribution through professional salons, which is a new channel
of distribution for us; and its significant potential for growth in
international markets, where its presence is underdeveloped. Additionally, Aveda
occupies a unique market position which complements our other brands; it has
experienced remarkable growth - nearly 20% compounded over the last five years;
and its management, led by founder Horst Rechelbacher, is truly entrepreneurial.
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Considering all these factors, we believe that Aveda Corporation has the
potential to become a significant contributor to the Estee Lauder Companies
within the next five years. We are very pleased to add Aveda to our portfolio of
quality brands and to strengthen its presence in the U.S. and expand its
international reach."
Horst Rechelbacher, Chairman and Founder of Aveda Corporation, said, "Since
founding the company nearly 20 years ago, we have been committed to bringing the
Aveda philosophy to as many consumers as possible. Following our rapid growth in
the U.S., we are now in a position to expand our presence in the U.S. and
international markets. We believe that the Estee Lauder Companies' strong
heritage of quality, innovation and service, as well as its huge international
presence, will be a great asset as we fulfill our plans for growth."
Aveda products are created with freshly distilled plants and flower essences
obtained from sources all over the world. Aveda incorporates its human studies
of the physiological and psychological effects of botanical ingredients to
develop its broad range of products. Some of these include Shampure, Pure-fumes
and the All-Sensitive line.
Headquartered in Minneapolis, Aveda maintains a major manufacturing facility
there, as well as the Aveda Institute which is a professional education center,
offering professional courses in all aspects of hair, skin and body care. The
Institute trains some of the most successful entrepreneurs in the field.
Aveda Corporation headquarters will remain in Minneapolis and Horst Rechelbacher
will continue in his role as Chairman of the company.
The Estee Lauder Companies Inc. is one of the world's leading manufacturers and
marketers of quality skin care, makeup and fragrance products. Its brands are
sold in more than 100 markets under well-recognized names including Estee
Lauder, Clinique, Aramis, Prescriptives, Origins, M-A-C, Bobbi Brown essentials,
Tommy Hilfiger, jane and, in the near future, Donna Karan. For the fiscal year
ended June 30, 1997, the Estee Lauder Companies had annual revenues of $3.4
billion and net earnings of $198 million.
The forward-looking statements in this press release involve risks and
uncertainties some of which are detailed in Exhibit 99.1 to the Company's report
on Form 10-Q for the quarter ended December 31, 1996 previously filed with the
SEC.
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