Korean cosmetic giant Amorepacific to buy U.S. luxury skincare brand Tata Harper

Amorepacific

01/09/2022 22:37

By Manya Saini and Anirban Sen
    Sept 1 (Reuters) - South Korea-based personal products maker
Amorepacific Corp  090430.KS  will buy Natural Alchemy LLC,
which operates the luxury beauty brand Tata Harper, as part of a
strategic push to tap into the growing North American market.
    Vermont-based Tata Harper, which was launched in 2010 by
Tata Harper and her former husband Henry Harper, currently sells
its products in 25 online stores and over 800 brick-and-mortar
retailers such as Sephora, Bluemercury and Neiman Marcus.
    It has grown in popularity in the United States over the
past decade driven by a growing base of affluent,
health-conscious consumers who are increasingly turning to
environment-friendly, natural cosmetic products.
    Tata Harper, which is a fast-growing and profitable
business, sources farm-grown herbs and plants for its products.
    Over the past few years, Tata Harper has fielded acquisition
interest from other potential buyers, but ultimately decided to
strike a deal with Amorepacific due to its R&D capabilities and
global reach, especially in Asia, where the luxury brand is
attempting to tap into a potentially lucrative customer base,
according to a person familiar with the matter.
    Alliance Consumer Growth made a minority investment in the
company in 2015. Tata Harper counts the likes of actors Gwyneth
Paltrow and Kate Hudson among its patrons.
    Amorepacific has made a push for growth in North America
with sales in the region surging 66% during the second quarter
of 2022 from the year-ago period. The company expects the deal
to close in the fourth quarter of this year.
    Financial terms of the deal were not disclosed by the
companies, although Amorepacific said in a filing that it would
invest 168 billion won ($123.86 million) in its U.S. business to
buy Tata Harper.
    Goldman Sachs & Co LLC acted as the financial adviser to
Tata Harper, while UBS Investment Bank advised Amorepacific.

 ($1 = 1,356.3500 won)

 (Reporting by Manya Saini in Bengaluru and Anirban Sen in New
York; Editing by Shounak Dasgupta)
 ((Manya.Saini@thomsonreuters.com))