Estee Lauder to acquire Dr. Jart+
The Estee Lauder Companies announced 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 in December 2019, 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. As one of the fastest growing skin care brands globally, Dr. Jart+ is expected to help further strengthen The Estee 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 the company'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 $500M in net sales in calendar year 2019. Have & Be's total enterprise is valued at approximately $1.7B, and The Estee 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.