By Kwak Yeon-soo
The Estee Lauder Companies has acquired Have & Be, the parent company of Dr. Jart+, as foreign cosmetic giants jostle for a slice of one of the world's most innovative beauty markets, according to industry officials Tuesday.
In December 2015, the U.S. cosmetics company purchased one third of Have & Be's stakes. Through the latest deal, it acquired the remaining two thirds.
Both sides declined to disclose the exact amount but it is estimated to be around 1.3 trillion won ($1.1 billion), according to the officials.
They said the successful acquisition is attributed to the brand's high-performing skincare products and devoted following among millennials in Asia and the U.S.
"Dr. Jart+ is widely known for fusing dermatological science and innovation in its skincare collections such as Cicapair and Ceramidin," said an official from a local cosmetics company.
"It also developed a product that restores a healthy skin microbiome that became a new skincare trend this year. If supported by Estee Lauder's retail channels, Dr. Jart+ can grow more internationally."
In fact, Dr. Jart+ has experienced significant growth since late 2015. The company saw its sales quadruple from 86.3 billion won in 2015 to 489.8 billion won last year. The brand is currently sold in 37 different regions across the globe.
"Foreign companies are starting to realize that Korean beauty brands are both marketable and sellable not just in Asia but also in Europe and North America," said an official from global cosmetic brand operating in Korea, who asked not to be named.
Unilever bought cosmetics company Carver Korea in $2.7 billion in 2017, and L'Oreal acquired Nanda, parent company of makeup brand 3CE and fashion retailer Stylenanda, last year.
Estee Lauder said Dr. Jart+, its first Asian beauty brand, was "perfectly positioned to satisfy the rapidly growing interest in the skincare category with its products that combine dermatological science, innovation and artistry."
"Dr. Jart+'s focus on creating high-quality skincare products make it a terrific, strategic addition to our diverse portfolio of prestigious beauty brands," said Fabrizio Freda, President and CEO of The Estee Lauder Companies.
Founded in 2005 by CEO Lee Chin-wook, Dr. Jart+ is a high-growth, global skincare brand fueled by innovation that offers a wide variety of products.
"Since the beginning of our partnership four years ago, Estee Lauder has shared our mission to provide the very best skincare and beauty products to consumers around the world. We are excited to continue this partnership and grow our brands globally," Lee said.
Lee will join the Estee Lauder team as a creative director.
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| Have & Be CEO Lee Chin-wook |
In December 2015, the U.S. cosmetics company purchased one third of Have & Be's stakes. Through the latest deal, it acquired the remaining two thirds.
Both sides declined to disclose the exact amount but it is estimated to be around 1.3 trillion won ($1.1 billion), according to the officials.
They said the successful acquisition is attributed to the brand's high-performing skincare products and devoted following among millennials in Asia and the U.S.
"Dr. Jart+ is widely known for fusing dermatological science and innovation in its skincare collections such as Cicapair and Ceramidin," said an official from a local cosmetics company.
"It also developed a product that restores a healthy skin microbiome that became a new skincare trend this year. If supported by Estee Lauder's retail channels, Dr. Jart+ can grow more internationally."
In fact, Dr. Jart+ has experienced significant growth since late 2015. The company saw its sales quadruple from 86.3 billion won in 2015 to 489.8 billion won last year. The brand is currently sold in 37 different regions across the globe.
"Foreign companies are starting to realize that Korean beauty brands are both marketable and sellable not just in Asia but also in Europe and North America," said an official from global cosmetic brand operating in Korea, who asked not to be named.
Unilever bought cosmetics company Carver Korea in $2.7 billion in 2017, and L'Oreal acquired Nanda, parent company of makeup brand 3CE and fashion retailer Stylenanda, last year.
 |
| The Estee Lauder Companies President and CEO Fabrizio Freda |
"Dr. Jart+'s focus on creating high-quality skincare products make it a terrific, strategic addition to our diverse portfolio of prestigious beauty brands," said Fabrizio Freda, President and CEO of The Estee Lauder Companies.
Founded in 2005 by CEO Lee Chin-wook, Dr. Jart+ is a high-growth, global skincare brand fueled by innovation that offers a wide variety of products.
"Since the beginning of our partnership four years ago, Estee Lauder has shared our mission to provide the very best skincare and beauty products to consumers around the world. We are excited to continue this partnership and grow our brands globally," Lee said.
Lee will join the Estee Lauder team as a creative director.
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