Estee Lauder to buy Dr. Jart+ maker Have & BeNew York-based cosmetics maker Estee Lauder Companies announced Monday that it signed a deal to acquire Have & Be, the Seoul-based skin care company behind Dr. Jart+.
It is the U.S. company’s first acquisition of an Asia-based beauty brand.
Have & Be is valued at $1.7 billion, with Estee Lauder already having acquired one-third of the company’s shares in 2015. The multinational cosmetics company will acquire the remaining two-thirds, with the deal expected to close within this year.
Estee Lauder said in a statement that Dr. Jart+ will strengthen its position in skin care and help it expand its reach in the Asia-Pacific region as well as North America and Britain as the Korean brand is one of the fastest growing skin care brands globally.
Dr. Jart+, launched in 2005 in Seoul, grew on the back of its unique combination of dermatological science and beauty, as reflected in the brand name inspired by the phrase “Doctor Joins Art.” Its best-known products include the skin care collections Cicapair and Ceramidin.
“Since December 2015, when the company initially invested in Have & Be, Dr. Jart+ has experienced significant growth and is expected to reach more than $500 million in net sales in calendar year 2019,” Estee Lauder added in statement.
According to market tracker Euromonitor International, sales of Have & Be increased by 195 percent in 2018 compared to 2013.
“The entrepreneurial spirit and creativity of Dr. Jart+ is a perfect fit for the Estee Lauder Companies,” said Estee Lauder Executive Chairman William P. Lauder. “As consumers increasingly focus on skin care and the category continues its … growth, the influence of cutting-edge, scientifically-driven brands like Dr. Jart+ is undeniable.”
“Under Estee Lauder’s global capability, Dr. Jart+ will grow its market presence in beauty and personal care with its iconic BB cream and dermo-cosmetics skin care lineup,” said Lisa Hong, senior analyst at Euromonitor International Korea. “After the acquisition, Dr. Jart+ is expected to continue selling on its K-beauty identity and looking ahead, the brand will expand its retailing channels.”
According to Euromonitor International, Estee Lauder is the fourth-largest company in the global beauty and personal care market, second in color cosmetics and third in skin care.
BY KIM JEE-HEE [firstname.lastname@example.org]