NEW YORK--(BUSINESS WIRE)--Oct. 25, 2015--
The Estée Lauder Companies Inc. (NYSE:EL) announced today that it has
signed an agreement to purchase an interest in Have & Be Co. Ltd., the
South Korean company behind skin care brands Dr. Jart+ and Do The Right
Thing. Terms of the investment were not disclosed. The deal is expected
to close in December 2015.
Launched online in 2005 by ChinWook Lee, Dr. Jart+ is a Seoul-based,
global high-growth skin care brand featuring quality and innovative
products designed to address specific skin care needs. The brand’s
unique fusion of dermatological science and art – as reflected in the
brand name, which is inspired by the phrase “Doctor Joins Art” – appeals
to a broad range of consumers, especially millennials. Dr. Jart+ is sold
in many countries around the world, primarily in Asia and the United
States, through various department stores, specialty-multi and
e-commerce channels including Sephora.
“We are thrilled to announce our partnership with Dr. Jart+,” said
Fabrizio Freda, President and Chief Executive Officer of The Estée
Lauder Companies Inc. “This investment gives our Company a strategic
opportunity to develop a partnership with one of Korea’s most promising
high-growth skin care brands. ChinWook Lee and his team have built a
successful and exciting brand that is at the forefront of the rapidly
expanding Korean beauty wave. We are pleased to partner with Mr. Lee and
we look forward to building long-term, strategic relationship with the
entire Dr. Jart+ team.”
“I am delighted to partner with The Estée Lauder Companies,” said
ChinWook Lee, Founder and Chief Executive Officer of Have & Be Co. Ltd.
“As the Korean beauty wave continues to flourish globally, we are
excited about the additional opportunities, support and guidance that
The Estée Lauder Companies will bring to our brands. This is a
tremendous moment for the Dr. Jart+ team and for the continued growth of
Korean beauty.”
Since its founding, Dr. Jart+ has been a pioneer in the development and
rapid proliferation of BB creams across the globe. Today, its iconic BB
cream line is a consumer favorite. The brand also sells a robust range
of innovative skin care products – including moisturizers, cleansers,
masks and serums – designed to address the needs of specific skin types.
The Estée Lauder Companies’ investment also includes an interest in Do
The Right Thing (DTRT), a men’s-focused skin care brand that fuses
Korean innovation with a bold New York style. Founded by Mr. Lee in
2012, DTRT’s line of cleansers, lotions, moisturizers and serums are
sold in Korea through various channels and in the United States through
Sephora and BirchboxMan.
"Global consumers look to Korea as a trendsetting market in beauty, and
the Dr. Jart+ brand is part of the reason why,” said William P. Lauder,
Executive Chairman of The Estée Lauder Companies Inc. “Dr. Jart+ and The
Estée Lauder Companies share an entrepreneurial heritage as well as a
commitment to innovation and creativity. We have great respect for this
brand, and we appreciate the opportunity to support and advise Mr. Lee
and his team as they continue to grow Dr. Jart+ globally.”
The Estée Lauder Companies Inc. received financial advice from BNP
Paribas and legal counsel from Lowenstein Sandler LLP and Kim & Chang.
Have & Be Co. Ltd. received financial advice from Michel Dyens & Co. and
legal counsel from Skadden, Arps, Slate, Meagher and Flom LLP and Bae,
Kim & Lee LLC.
The forward-looking statements in this press release, including those in
the quoted remarks and those relating to the expectations for the
investment in Have & Be Co. Ltd. involve risks and uncertainties.
Factors that could cause actual results to differ materially from those
forward-looking statements include current economic and other conditions
in the global marketplace, actions by retailers, suppliers and
consumers, competition, the satisfaction of closing conditions, the
ability of the parties to successfully partner, Have & Be’s ability to
implement its long-term strategic plan, and those factors described in
the Company's annual report on Form 10-K for the year ended June 30,
2015.
The Estée Lauder Companies Inc. is one of the world’s leading
manufacturers and marketers of quality skin care, makeup, fragrance and
hair care products. The Company’s products are sold in over 150
countries and territories under brand names including: Estée Lauder,
Aramis, Clinique, Prescriptives, Lab Series, Origins, Tommy Hilfiger,
M•A•C, Kiton, La Mer, Bobbi Brown, Donna Karan New York, DKNY, Aveda, Jo
Malone London, Bumble and bumble, Michael Kors, Darphin, GoodSkin Labs,
Tom Ford, Ojon, Smashbox, Ermenegildo Zegna, AERIN, Osiao, Marni, Tory
Burch, RODIN olio lusso, Le Labo, Editions de Parfums Frédéric Malle and
GLAMGLOW.
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Source: The Estée Lauder Companies Inc.
The Estée Lauder Companies Inc.
Investor Relations:
Dennis
D’Andrea, 212-572-4384
or
Media Relations:
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Trower, 212-572-4430