Trusts Affiliated With Descendants of Leonard A. Lauder Seek to Sell Over $1 Billion of Stock

The family of Leonard A. Lauder is seeking to sell over $1 billion of the Estée Lauder Cos. stock.

Trusts affiliated with descendants of Leonard A. Lauder are proposing to sell 11,301,323 shares of the company’s Class A common stock, par value $.01 per share, through a proposed registered public offering, the Estée Lauder Cos. said.

J.P. Morgan Securities is acting as the sole underwriter of the offering.

The selling stockholders will receive all of the proceeds from the offering and not the beauty company. They intend to use the proceeds of the offering to assist with the settlement of Leonard A. Lauder’s estate, including to satisfy certain estate obligations such as estate taxes, debts and administration expenses, according to a statement.

Based on shares outstanding as of Oct. 23, following completion of the offering, members of the Lauder family will beneficially own, directly or indirectly, 82 percent of the outstanding voting power of the company’s common stock.

Leonard A. Lauder, arguably the most influential and respected architect of the prestige beauty business, died in June at age 92.

Lauder spent his career molding the Estée Lauder Cos. into the global leader of prestige beauty that it is today. Its brands include Clinique, Bobbi Brown, Deciem, La Mer and Tom Ford.

Several members of his family including William P. Lauder, Jane Lauder, Gary M. Lauder and Eric L. Zinterhofer sit on the board of the beauty company, although as of recently none is involved in the day to day running of the business.