The Estée Lauder Companies to acquire Dr. Jart+ in first Asian beauty brand acquisition

It is the first time that The Estée Lauder Companies has acquired an Asia-based beauty brand

The Estée Lauder Companies Inc. has struck an agreement to fully acquire global skincare company Have & Be Co. The deal follows the US beauty house’s minority investment in Have & Be Co. Ltd in December 2015 and is expected to close by December 2019.

The Korean beauty firm owns Dr. Jart+ and men’s grooming brand Do The Right Thing. It is the first time that The Estée Lauder Companies has acquired an Asia-based beauty brand.

The Estée Lauder Companies has agreed to acquire the remaining two-thirds of Have & Be Co. Ltd, net of cash acquired and subject to regulatory approvals and post-closing adjustments.

The acquisition of Dr. Jart+ in particular, which is one of the fastest-growing skincare brands worldwide, is part of The Estée Lauder Companies strategy to strengthen its skincare portfolio and expand its reach in Asia Pacific, North America and travel retail.

Have & Be Co is currently valued at US$ 1.7 billion. The Estée Lauder Companies will fund the transaction with debt. Regarding the closing, The Estée Lauder Companies expects to have a non-cash gain on its initial investment in Have & Be Co.

Dr. Jart+ is coined from the phrase ‘Doctor joins art’. It is The Estée Lauder Companies first Asia-based beauty brand acquisition.

Dr. Jart+ is known for its innovative skincare products. Highlights include its Cicapair and Ceramidin collections.

Since the company’s minority investment in Have & Be Co. Ltd in 2015, Dr. Jart+ has experienced sustained growth. The skincare brand is expected to reach more than US$500 million in net sales by the end of 2019. It has performed particularly strongly in Asian travel retail, where it is handled with much success in numerous

markets by Singapore-based Jonathan Holland & Associates.

Dr. Jart+ was founded in 2005 by CEO Chin Wook Lee. The global skincare brand offers a wide variety of high-performing skincare products, which include masks, cleansers, and serums. The brand is sold through specialty multi-channels, travel retail, freestanding stores, high-end department stores, and e-commerce. It is available in over 35 countries worldwide.

Dr. Jart+ combines ‘dermatological science and art’ which is reflected in its brand name. This was originally coined from the term “Doctor Joins Art”. The brand has a loyal following in both Asia and North America. It has become well-known for its fast-moving and innovative product pipeline and fast speed-to-market capabilities.

‘Packaging as Art’: The brand’s unique visual identity and cutting-edge products has made it one of the world’s fastest-growing skincare brands

Dr. Jart+ will be overseen by The Estée Lauder Companies Group President Jane Hertzmark Hudis.

According to The Estée Lauder Companies President and Chief Executive Officer Fabrizio Freda, the acquisition was the logical next step to the company’s long-standing relationship with Have & Be Co. Ltd. He said: “We have built an incredible, long-term partnership with Chin Wook 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.

“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,” he added.

The sentiment was echoed by Have & Be Co Chief Executive Officer Chin Wook Lee who said, “The Estée Lauder Companies is the ideal home for our brands.

“Since the beginning of our partnership four years ago, the company has shared our mission to provide the very best skin care and beauty products to consumers around the world. We are excited for the opportunity to continue this partnership as we continue to innovate and grow our brands globally.”

“The Estée Lauder Companies is the ideal home for our brands” – Have & Be Co Chief Executive Officer Chin Wook Lee

For Estée Lauder Companies Executive Chairman William Lauder, the acquisition of Dr. Jart+ is a perfect for the company’s growing skincare portfolio. He said “The entrepreneurial spirit and creativity of Dr. Jart+ is a perfect fit for The Estée Lauder Companies. As consumers increasingly focus on skincare 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 Chin Wook Lee and his entire team to our family.”

The Estée Lauder Companies has a longstanding relationship with Have & Be Co, Dr. Jart+’s parent company.

 

Going strong on Globuy

As a lead business partner of The Moodie Davitt Report, The Estée Lauder Companies’s story will also appear in coming days in Chinese and with a consumer voice on fast-growing Chinese B2C WeChat social media account Globuy [??????], as part of a new collaboration between Globuy owner Extra-Aile Media in Shanghai and The Moodie Davitt Report.

Globuy aims to become “the KOL of Chinese travel retail” and already has 400,000 followers and a monthly audience of 1 million views for its WeChat social media platform promoting new launches, product availability, promotions and special offers. Underlining the strong affinity and complementary nature of the two companies’ work, Globuy has dubbed The Moodie Davitt Report “the KOL of travel retail B2B media”

Under the agreement, selected stories from The Moodie Davitt Report.com’s lead brand partners in beauty, fashion, luxury, confectionery and premium spirits are also published by Globuy in Chinese. These include product reviews by the Globuy team.

Globuy is promoting The Moodie Davitt Report’s platform to China’s travel retail sector and to its own consumer audience in China. The Moodie Davitt Report subsequently also publishes a curated selection of Chinese consumer feedback on the chosen stories and will reveal the results of regular consumer surveys conducted in association with Globuy.