In what is reportedly its first acquisition of an Asian beauty brand, Estee Lauder Cos. has agreed to purchase two-thirds of Dr. Jart+ cosmetics owner Have & Be Co. for approximately $1.1 billion. Dr. Jart+ was founded in Seoul in 2005 and sells masks, moisturizers, serums and cleansers under names such as Ceramidin and Cicapair, Deal Street Asia reported.
Have & Be also owns Do The Right Thing, a men’s grooming brand.
The current transaction is forecasted to close in December. The enterprise value of Have & Be is approximately $1.7 billion, Estee Lauder noted, although no other financial information was shared. The company reportedly plans to use debt to fund the purchase.
Estee Lauder’s financial adviser was Perella Weinberg Partners LP, with Lowenstein Sandler LLP and Kim & Chang serving as legal counsel.
Executives are aiming to revive sales in the U.S. by buying hot brands and focusing on younger shoppers across the industry. Estee Lauder has brought Becca and Too Faced into its lineup, among others. The cosmetics company was reportedly among the final bidders for Drunk Elephant, a millennial and Gen Z skincare brand, but lost out to Shiseido Co. of Japan.
In separate cosmetics news, Kylie Jenner’s Kylie Cosmetics is on pace for roughly $200 million in sales this year as part of a wave of lines capitalizing celebrity founders and social media. Coty Inc., a cosmetics and fragrance company, now plans to pay $600 million for a controlling stake in the firm. Coty Finance Chief Pierre-André Terisse said, per past reports, “This is where the growth of the market is.” He noted that the brand is attractive for its online presence and skincare business. Coty plans to buy 51 percent of Kylie Cosmetics.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More