Korean cosmetics giant acquires Vermont luxury clean beauty brand Tata Harper
Vermont Business Magazine Amorepacific has entered into a definitive agreement to acquire Tata’s Natural Alchemy, LLC, known as Tata Harper, a pioneer in natural luxury skincare, in a move that further signals the company’s intention to continue its penetration global markets with a firm focus on consumers in North America. Tata Harper is based in Whiting. Financial terms were not disclosed, but Amorepacific has reserved $125 million for the transaction, which was announced on September 1 and is expected to close on October 31.
Tata Harper, co-founder of the company, will continue to lead the brand. According BeautyIndependent sales in 2017 were between $60 and $65 million. According to BI, “Amorepacific has established a $125 million Special Purpose Acquisition Company or SPAC in the United States to subsume the brand.”
Since its inception 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. Focusing primarily on the US market, Tata Harper currently sells its products through 25 online stores, including its own direct-to-consumer website, Net-a-Porter and Cult Beauty, as well as over 800 physical stores. . 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 streamlined beauty brand instilled with the core values of healthy beauty, values society and consumers crave today. With Amorepacific’s world-class R&D and P&L infrastructure, we anticipate that Tata Harper will be able to significantly expand its footprint in Western and Asian markets,” said Jinpyo Lee, Chief Strategy Officer at Amorepacific Group.
The acquisition of Tata Harper will strongly add to Amorepacific’s current offering. By diversifying its distribution channels, the Korean cosmetics giant will expand its business into the Americas and Europe, while realigning its strategies to further expand its presence in Asian markets. Amorepacific will continue to promote leading product categories through intensive marketing activities, while simultaneously boosting product competitiveness through joint research and expansion of new categories. Amorepacific will also improve Tata Harper’s profitability by leveraging its size and streamlining a variety of internal processes.
Co-Founder and Co-CEO Tata Harper said, “Henry and I founded the brand on our Vermont farm in our quest to develop a portfolio of products that will deliver effective results and a luxury experience without having to jeopardize your health. Our approach to formulation, including total manufacturing control, has allowed us to pioneer the next generation of beauty products. I look forward to leveraging Amorepacific’s expertise to drive global growth and continue to serve our consumers, who rely on Tata Harper for the best results from their skincare.
As a global beauty company, Amorepacific Group continues to show strong growth in North America, thanks to the recent diversification of its global business. According to the Q2 2022 earnings release, sales in North America jumped 66% year-over-year, driven by global brands such as LANEIGE, Sulwhasoo and innisfree, among others. The recent strong sales performance is supported by broader sales channels through brand stores and e-commerce, which is in line with current market trends. In addition, aggressive marketing of bestsellers for each of the respective brands, as well as successful collaborations with local influencers, have increased brand awareness. Amorepacific continues to build its presence as an innovative skincare brand, with LANEIGE ranked as the top-selling beauty and personal care brand, and Sulwhasoo’s First Care Activating Serum EX sold out completely during the day. Amazon Prime this year.
UBS Investment Bank and K&L Gates acted as financial and legal advisors to Amorepacific, respectively. Goldman Sachs & Co. LLC and Arnold & Porter respectively acted as financial and legal advisors to Tata Harper.
Amorepacific Group 2022-09-01 https://www.apgroup.com/