THE WHAT? The Estee Lauder Companies has announced that it has signed an agreement to acquire the remaining shares in Have & Be Co, the Seoul-based owner of Dr Jart+ and Do the Right Thing.
THE DETAILS The acquisition is expected to complete before the end of the year and follows from the US prestige giant’s December 2015 minority investment in the K-beauty firm.
Since that investment, Dr Jart+ has experienced significant growth and is expected to clock up more than US$500 million in sales by the end of the year. Have & Be Co is valued at US$1.7 billion and The Estee Lauder Companies has agreed to acquire the remaining two-thirds net of cash acquired and subject to certain post-closing adjustments.
“We have built an incredible, long-term partnership with ChinWook Lee and his terrific team over the last four years, and we are so pleased to officially welcome this fast-growing and globally beloved brand into our portfolio,” said Fabrizio Freda, President and Chief Executive Officer of The Estée Lauder Companies. “As the Company’s first acquisition of an Asia-based beauty brand, Dr Jart+’s focus on creating high-quality skin care products that fuse dermatological science, incredible innovation capabilities and artistic expression make it a terrific, strategic addition to our diverse portfolio of prestige beauty brands. We look forward to continued global growth in the years to come.”
THE WHY? The acquisition will help further strengthen The Estee Lauder Companies’ leadership of the booming skin care category as well as extend its reach in Asia/Pacific, North America, the UK and travel retail.
“The entrepreneurial spirit and creativity of Dr Jart+ is a perfect fit for The Estée Lauder Companies,” said William P. Lauder, Executive Chairman of The Estée Lauder Companies Inc. “As consumers increasingly focus on skin care and the category continues its rapid global growth, the influence of cutting-edge, scientifically-driven brands like Dr Jart+ is undeniable. We are delighted to welcome ChinWook Lee and his entire team to our family.”