South Korea-based personal products maker Amorepacific will purchase Natural Alchemy, which usually operates the luxury elegance brand Tata Harper, as part of a strategic push to tap into the particular growing North American market.
Vermont-based Tata Harper, which was launched in 2010 simply 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 recognition in the United States over the past 10 years driven by an increasing base of affluent, health-conscious consumers that are increasingly turning to environment-friendly, natural cosmetic products.
Tata Harper, which is a fast-growing and profitable business, resources farm-grown herbs plus plants for its products.
Over the past few years, Tata Harper has fielded acquisition curiosity from other potential buyers, yet ultimately decided to hit a deal with Amorepacific due to its R& M capabilities and worldwide reach, especially in Asian countries, where the luxury brand is attempting to make use of a potentially lucrative customer base, according to a person familiar with the situation.
Alliance Consumer Growth made a minority investment in the company in 2015. Tata Harper matters the likes of actors Gwyneth Paltrow and Kate Hudson among its patrons.
Amorepacific has made a force for growth within North America with product sales in the region surging 66 per cent during the 2nd quarter of 2022 from the year-ago time period. The company expects the deal to close in the fourth quarter of the year.
Financial terms of the deal were not disclosed by the businesses, although Amorepacific said in a filing it would invest 168 billion won (US$123. 86 million) in the US business to buy Tata Harper.
Goldman Sachs served as the financial agent to Tata Harper, while UBS Investment decision Bank advised Amorepacific.