Target Corp. will acquire the DermStore Beauty Group for an undisclosed amount. The acquisition positions Target to expand its share of the rapidly evolving online beauty market and will further differentiate the company's offerings in this important retail segment, according to the company.
Following the transaction closing, expected to be completed in 60 days, DermStore will become a new, wholly owned subsidiary of Target. DermStore will continue to operate as a separate entity under its online name, DermStore.com. Target believes this transaction presents a strategic growth opportunity; however, there will not be any material impact to Target's 2013 results.
Dan Obegi, current CEO of DermStore, will be president of the wholly owned subsidiary and will report to Casey Carl, president of Multichannel and senior vice president, Enterprise Strategy, Target. DermStore also operates HairEnvy.com and Blush.com. This move by Target follows its recent acquisition of CHEFS Catalog and Cooking.com earlier in 2013.