The Estée Lauder Companies Inc. announced today that it has signed an agreement to acquire the shares that it does not already beneficially own in Have & Be Co. Ltd., the Seoul-based, global skin care company behind Dr. Jart+ and men’s grooming brand Do The Right Thing. Expected to close next month, the acquisition follows the company’s December 2015 minority investment in Have & Be Co. Ltd. and is pursuant to an agreement made at that time.
Dr. Jart+ is expected to help further strengthen The Estée Lauder Companies’ leadership position in skin care, and will especially help expand the company’s consumer reach in Asia/Pacific, North America, the United Kingdom and travel retail.
This is Lauder’s first acquisition of an Asia-based beauty brand.
Since December 2015, when the company initially invested in Have & Be Co. Ltd., Dr. Jart+ has experienced significant growth and is expected to reach more than $500 million in net sales in calendar year 2019. Have & Be’s total enterprise is valued at approximately $1.7 billion, and The Estée Lauder Companies has agreed to acquire the remaining two-thirds of Have & Be Co. Ltd., net of cash acquired and subject to certain post-closing adjustments. The company expects to fund this transaction with debt. The acquisition is subject to certain conditions, including regulatory approvals. In connection with the closing, the Company expects to have a non-cash gain on its initial investment in Have & Be Co. Ltd.
Founded in 2005 by CEO ChinWook Lee in Seoul, South Korea, Dr. Jart+ offers a wide variety of high-performing skin care products. The firm’s brand name was inspired by the phrase “Doctor Joins Art” – Dr. Jart+. Today it is sold through specialty-multi channels, travel retail, freestanding stores, high-end department stores and e-commerce sites in more than 35 countries globally.
“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 CEO of The Estée Lauder Companies Inc. “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 Estée Lauder Companies is the ideal home for our brands,” said Lee.
