Amorepacific Acquires Tata Harper

Korean cosmetics giant Amorepacific announces acquisition of luxury clean beauty brand Tata Harper In a move that further demonstrates Amorepacific's intent to continue its entry into global markets with a tight focus on consumers in North America, the company announced it has entered into a definitive agreement to acquire Tata's Natural Alchemy. The acquisition is expected to close in the fourth quarter of 2022. Tata Harper, the brand's founding partner, will continue to manage the brand. Since its founding in 2010, Tata Harper has defined the luxury skincare category by adhering strictly to clean beauty principles in everything from product development to packaging. The brand's "uncompromising beauty" mission has enabled Tata Harper to develop and maintain a strong global fan base. The company uses 100% naturally derived ingredients that contain no genetically modified organisms (GMOs), toxins, fillers, artificial colors/fragrances or synthetic chemicals.

Tata Harper currently sells its products through its direct-to-consumer website as well as in 25 online retailers including Net-a-Porter and Cult Beauty. The brand is sold in more than 800 retailers including Sephora, Bluemercury and Neiman Marcus. Tata Harper received a minority investment from Alliance Consumer Growth in 2015.

Jinpyo Lee, Chief Strategy Officer of Amorepacific Group, said "Tata Harper is a clean beauty brand infused with the core values of healthy beauty that represent the values sought by society and consumers today. We hope that, powered by Amorepacific's first-class R&D and P&L infrastructure, we can significantly expand Tata Harper's footprint in Western and Asian markets." The acquisition of Tata Harper will add significantly to Amorepacific's existing portfolio. As the Korean cosmetics giant diversifies its distribution channels and recalibrates its strategies to further increase its presence in Asian markets, it will expand its business to America and Europe. While Amorepacific continues to promote flagship product categories through intensive marketing activities, it will also boost product competitiveness by expanding joint research and new categories. Amorepacific will also increase Tata Harper's profitability by leveraging its scale and streamlining various internal processes. Founder and CEO Tata Harper said "Henry and I built the brand at our farm in Vermont with a vision to develop a product portfolio that would deliver effective results and a luxury experience without compromising on health. Our formulation approach, which involves complete control of production, has enabled 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 trust Tata Harper to deliver maximum results from skincare products." As a global beauty company, Amorepacific Group has continued to record high growth in North America thanks to the recent diversification of its global operations. According to the second quarter 2022 earnings announcement, sales in North America increased 66% year-over-year, led by global brands including LANEIGE, Sulwhasoo and innisfree. Strong recent sales performance has been supported by broader sales channels through brand stores and e-commerce aligned with prevailing market trends. Additionally, aggressive marketing of bestsellers for each of the respective brands and successful collaborations with local influencers have provided increased brand awareness. Amorepacific continues to strengthen its presence as an innovative skincare brand, with LANEIGE ranked as the best-selling Beauty & Personal Care brand and Sulwhasoo's First Care Activating Serum EX selling out completely during Amazon Prime Day this year. UBS Investment Bank and K&L Gates served as financial and legal advisors to Amorepacific. Goldman Sachs & Co. LLC and Arnold & Porter served as financial and legal advisors to Tata Harper. Source