The Estée Lauder Companies has signed an agreement to acquire the shares that it does not already beneficially own in Have & Be, 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 and is pursuant to an agreement made at that time. As a skin care brands growing globally, it is expected to help further strengthen Estée Lauder Companies’ 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, Dr. Jart+ has experienced 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 the company, 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+ is a high-growth, global skin care brand that offers a wide variety of skin care products. With a combination of dermatological science and art – as is reflected in the brand name, which is inspired by the phrase “Doctor Joins Art” – the brand appeals to a broad range of consumers and has a devoted following among millennials in Asia and the United States. Best known for its on-trend skin care collections such as Cicapair and Ceramidin, the brand is renowned for its outstanding and fast-moving innovation pipeline and rapid speed-to-market capabilities. Sold through specialty-multi channels, travel retail, freestanding stores, high-end department stores and e-commerce sites in more than 35 countries globally, the brand offers a wide range of high-quality moisturizers, masks, cleansers and serums that are beloved for their innovative, breakthrough formulations.
Jane Hertzmark Hudis, Group President of the EstéeLauder Companies, will add the new brand to the portfolio of brands that she oversees.
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