Estee Lauder to Buy Have & Be in First Asian Brand Takeover
Dr. Jart+ will help expand the company’s consumer reach in the Asia-Pacific region as well as in travel retail: Estee Lauder.
(Bloomberg) -- Estee Lauder Cos. agreed to buy the two-thirds of Have & Be Co., the South Korean owner of Dr. Jart+ cosmetics, that it didn’t already own for about $1.1 billion, its first acquisition of an Asian beauty brand.
Founded in 2005 in Seoul, Dr. Jart+ sells moisturizers, masks, cleansers and serums under names like Cicapair and Ceramidin and will draw revenue of more than $500 million this year, Estee Lauder said in a statement Monday.
Estee Lauder cut its earnings outlook late last month, citing a volatile geopolitical environment. Dr. Jart+ will help expand the company’s consumer reach in the Asia-Pacific region as well as in travel retail, according to the New York-based cosmetics giant. It would rank in the top 10 largest brands owned by Estee Lauder. Tom Ford, Jo Malone, Bobbi Brown and Aveda each do between $500 million and $1 billion in annual sales, the company said at a shareholder meeting last week.
Across the industry, executives are trying to revive sales in the U.S. by targeting younger shoppers and acquiring hot brands. Estee Lauder’s has added Too Faced and Becca, among others, to its stable. While the cosmetics giant was among final bidders for the millennial and Gen Z skin-care brand Drunk Elephant, according to Women’s Wear Daily, but lost out to Japan’s Shiseido Co.
Estee Lauder rose as much as 1% in New York Monday. The shares had climbed 47% this year through Friday’s close, about twice the gain in the S&P 500 Index.
Have & Be also owns the men’s grooming brand Do The Right Thing. Estee Lauder first bought a stake in the company at the end of 2015. The current transaction is expected to close next month. Have & Be’s enterprise value is about $1.7 billion, Estee Lauder said, without providing other financial details. It plans to fund the purchase with debt.
Perella Weinberg Partners LP served as financial adviser to Estee Lauder, while Lowenstein Sandler LLP and Kim & Chang served as legal counsel. Have & Be was advised by Michel Dyens & Co. while Skadden, Arps, Slate, Meagher & Flom LLP as well as Bae, Kim & Lee LLC served as its legal counsel.
To contact the reporters on this story: Marthe Fourcade in Paris at mfourcade@bloomberg.net;Kim Bhasin in New York at kbhasin4@bloomberg.net
To contact the editors responsible for this story: Eric Pfanner at epfanner1@bloomberg.net, John Lauerman, Lisa Wolfson
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