Estee Lauder Buys Remaining MAC Equity

Estee Lauder Cos. acquired the remaining equity interest of Make-Up Art Cosmetics, a growing Toronto-based beauty brand that has been widely embraced by the urban chic. Although the deal had been expected, it occurred earlier than some analysts had predicted. The New York-based Estee Lauder had acquired 51% of MAC in 1994, then increased its ownership to 70% in March 1997. Terms were not disclosed. MAC founder Frank Toskan, who will remain head of MAC, was unavailable for comment. But during an interview with The Times in December, Toskan said MAC needed Estee Lauder’s marketing muscle to expand globally. As the owner of several cosmetics companies, including Clinique, Prescriptives, Origins and Aveda, Estee Lauder is well-known for preserving the uniqueness of each brand. For that reason, analysts do not expect major changes at MAC. Estee Lauder shares rose 31 cents to close at $58.50 on the NYSE.