(RTTNews) - The Este Lauder Companies Inc. (EL) said it has agreed to acquire the shares that it does not already beneficially own in Have & Be Co. Ltd., the Seoul-based skin care company behind 'Dr. Jart+' and men's grooming brand 'Do The Right Thing'. This is the company's first acquisition of an Asia-based beauty brand.
Have & Be's total enterprise is valued at about $1.7 billion, and Este Lauder has agreed to acquire the remaining two-thirds of Have & Be., net of cash acquired and subject to certain post-closing adjustments. The company expects to fund this transaction with debt.
The acquisition follows Este Lauder's December 2015 minority investment in Have & Be Co. Ltd. and is pursuant to an agreement made at that time. The transaction is expected to close in December 2019.
In connection with the closing, the company expects to have a non-cash gain on its initial investment in Have & Be Co.
The company noted that the acquisition will especially help expand its consumer reach in Asia/Pacific, North America, the United Kingdom and travel retail.
"As the Company's first acquisition of an Asia-based beauty brand, Dr. Jart+'s focus on creating high-quality skin care products that fuse dermatological science, incredible innovation capabilities and artistic expression make it a terrific, strategic addition to our diverse portfolio of prestige beauty brands," said Fabrizio Freda, President and Chief Executive Officer of Este Lauder.
Jane Hertzmark Hudis, Group President of Este Lauder Companies will add Dr. Jart+ to the portfolio of brands that she oversees.