The family of Leonard A. Lauder is seeking to sell more than $1 billion worth of Estée Lauder Companies stock.
Trusts affiliated with Lauder’s descendants plan to sell 11,301,323 shares of the company’s Class A common stock, par value $0.01 per share, through a proposed registered public offering.
The selling stockholders intend to use the proceeds to assist with the settlement of Lauder’s estate, including satisfying estate obligations such as taxes, debts, and administration expenses.
Based on shares outstanding as of 23 October, following the completion of the offering, members of the Lauder family will continue to beneficially own, directly or indirectly, 82% of the outstanding voting power of the company’s common stock.
Leonard A. Lauder, the eldest son of Estée Lauder Companies co-founders Estée and Joseph Lauder, passed away in June at the age of 92.
After serving as a lieutenant in the US Navy, Lauder formally joined Estée Lauder in 1958. Over the next six decades, he played a pivotal role in transforming the company from a small, single-brand US business into a global multi-brand powerhouse in the prestige beauty industry.
He served as President of the company from 1972 to 1995 and as Chief Executive Officer from 1982 to 1999. In 1995, he was named Chairman, a position he held until June 2009.
Even as Chairman Emeritus, Lauder remained actively involved in the company’s operations, frequently visiting the global headquarters in New York as well as stores and counters worldwide.
He also played a key role in the company’s acquisition strategy, helping bring brands such as Aveda, Bobbi Brown, Jo Malone London, La Mer, and MAC Cosmetics into the portfolio.
Several members of his family - including William P. Lauder, Jane Lauder, Gary M. Lauder, and Eric L. Zinterhofer - continue to serve on the board of the company.
