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SEOUL, South Korea, Sept. 1, 2022 /PRNewswire/ -- Amorepacific today announced that it has entered into a definitive agreement to acquire Tata's Natural Alchemy, LLC ("Tata Harper" or the "Company"), a pioneer in natural luxury skincare, in a move that further signals the company's intention to continue its penetration of global markets with a firm focus on consumers in North America. The closing of the acquisition is expected to occur in early 4Q 2022. Tata Harper, the Company's co-founder, will continue to lead the brand.
Amorepacific announced the acquisition of Tata Harper to expand its business in the global clean beauty market
Since its creation in 2010, Tata Harper has defined the luxury skincare category by strictly adhering to its core principle of clean beauty in everything from product development to packaging. The brand's mission of "beauty made without compromise" has enabled Tata Harper to develop and maintain a strong global fan base. The Company uses 100% naturally derived ingredients without any genetically modified organisms (GMOs), toxins, fillers, artificial colors / fragrances, or synthetic chemicals. With a primary focus on the U.S. market, Tata Harper currently sells its products in 25 online stores, including its own direct-to-consumer website, Net-a-Porter, and Cult Beauty, as well as in over 800 brick-and-mortar retailers such as Sephora, Bluemercury, and Neiman Marcus. Tata Harper received a minority investment from Alliance Consumer Growth in 2015.
"Tata Harper is a clean beauty brand instilled with the core values of healthy beauty - values that society and consumers are looking for today. Fueled by Amorepacific's top-notch R&D and P&L infrastructure, we expect Tata Harper will be able to significantly expand its footprint in the Western and Asian markets," said Jinpyo Lee, Chief Strategy Officer at Amorepacific Group.
The acquisition of Tata Harper will be highly additive to Amorepacific's current offering. By diversifying its distribution channels, the Korean cosmetics giant will expand its business to the Americas and Europe, while realigning strategies to further broaden its presence in Asian markets. Amorepacific will continue to promote flagship product categories through intensive marketing activities, while simultaneously boosting product competitiveness through joint research and expanding new categories. Amorepacific will also enhance the profitability of Tata Harper by leveraging its scale and streamlining a variety of internal processes.
Co-founder and co-CEO, Tata Harper, commented, "Henry and I founded the brand on our farm in Vermont in our quest to develop a portfolio of products which will deliver efficacious results and a luxury experience without having to compromise your health. Our approach to formulation, including full control of manufacturing, has allowed us to pioneer the next generation of beauty. I look forward to leveraging Amorepacific's expertise to drive global growth and continue to serve our consumers, who rely on Tata Harper to deliver the most results from their skincare."
As a global beauty company, Amorepacific Group continues to post high growth in North America, thanks to the recent diversification of its global businesses. According to the 2Q 2022 earnings release, sales in North America jumped by 66% year-on-year, led by global brands including LANEIGE, Sulwhasoo, and innisfree, among others. The recent strong sales performance is backed by wider sales channels through brand stores and e-commerce, which is in line with current market trends. Furthermore, aggressive marketing of best-sellers for each of the respective brands, as well as successful collaborations with local influencers, powered higher brand awareness. Amorepacific continues to strengthen its presence as an innovative skincare brand, with LANEIGE ranked as the most widely sold Beauty & Personal Care brand, and Sulwhasoo's First Care Activating Serum EX completely sold out during Amazon Prime Day this year.
UBS Investment Bank and K&L Gates acted as Amorepacific's financial and legal advisors, respectively. Goldman Sachs & Co. LLC and Arnold & Porter acted as Tata Harper's financial and legal advisors, respectively.
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