Dr. Jart+ May Revert to Korean Ownership as Acquisition Discussions Begin

Key Takeaways

Korean private equity firm PTA Partners is seeking a joint acquisition of Have & Be, the owner of Dr. Jart+, from Estée Lauder.
The brand has struggled financially since Estée Lauder’s acquisition in 2019, leading to proposals for a return to Korean ownership.
PTA Partners aims to leverage Korea’s K-beauty ecosystem to revitalize the brand and restore its growth trajectory.

PTA Partners Pursues Acquisition of Dr. Jart+

PTA Partners, a Korean private equity firm, is reportedly pursuing a joint acquisition of Have & Be, the parent company of the popular skincare brand Dr. Jart+, from Estée Lauder. The move seeks to potentially return the renowned K-beauty brand back into Korean hands.

As per reports, PTA Partners is currently evaluating a deal for Have & Be, supported by several domestic strategic investors, including independent beauty brands. Prominent global investment banks, Evercore and JPMorgan, are managing the sale process, which has pegged the business valuation at over 200 billion won.

Dr. Jart+ was acquired by Estée Lauder in 2019 for more than 1 trillion won. However, the brand has faced significant financial hardships since then, with revenue plummeting from 634.7 billion won and an operating profit of 121.4 billion won in 2019 to a revenue of just 178.8 billion won accompanied by an operating loss of 23.2 billion won last year.

Industry experts point to Estée Lauder’s challenges in aligning the brand with evolving beauty trends and its weakened domestic marketing efforts as key factors in Dr. Jart+’s decline. PTA Partners believes that they can successfully rejuvenate the brand by tapping into Korea’s well-established K-beauty infrastructure, which includes advanced Original Design Manufacturer (ODM) and Original Equipment Manufacturer (OEM) capabilities, effective global influencer marketing, and a growing international demand for Korean cosmetics.

This anticipated acquisition is reflective of a broader investment strategy by PTA Partners, aiming to strengthen its presence in both the Korean and European beauty markets. The firm hopes that by reconnecting Dr. Jart+ with the rapidly changing K-beauty landscape and its global momentum, they can restore the brand to its former growth trajectory.

In summary, PTA Partners’ drive to acquire Have & Be represents a growing sentiment among local investors that they are better suited to navigate the dynamic beauty environment and foster Dr. Jart+’s revival.

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