South Korean beauty conglomerate Amorepacific has acquired a substantial minority stake in Australian luxury skincare brand Rationale.
WHO: Founded in 1992 by cosmetic chemist Richard Parker, Melbourne-born Rationale has built a cult following for its results-driven and science-backed approach to skincare. The brand foundation is personalized products and services determined through skin testing and analysis. Essential Six Collections is an assortment of formulations that deliver environmental protection by day and repair at night. The brand currently operates 15 branded stores in Australia, its own online site, and through a network of 50 medical offices including dermatologists and plastic surgeons. To date the brand has only been available in Australia.
Founded in 1945, Amorepacific has grown to be Korea’s leading Beauty Company with its portfolio of over 20 cosmetics, personal care, and health care brands. Amorepacific is devoted to meeting the various lifestyles and needs of global consumers around the world: Asia, North America, Europe, Oceania, and the Middle East.
WHY: The investment strengthens its luxury portfolio, as well as moving forward Amorepacific’s future R&D priorities to secure leadership in the personalized cosmetics category.
IN THEIR OWN WORDS: In a joint statement, Amorepacific President Saehong Ahn said the venture will see the two brands share one innovative vision: “Rationale and Amorepacific will take personalised skincare solutions to a new level. Amorepacific will continue to look into M&A and partnerships with promising companies and secure opportunities for future growth.”
“There is an intuitive alignment between Rationale and Amorepacific, particularly in regard to their understanding of the luxury client, and simultaneous commitment to research, development, and world-leading innovation. We are elated to take our signature luminosity to the world with Amorepacific,” says Rationale founder and Executive Director Richard Parker.
- Amorepacific has acquired a minority stake in Rationale.
- Amorepacific will have an advisory role and voting rights on Rationale’s board.
- The brand has recorded double-digit growth in its average annual sales over the past five years.
- Until now the products have only been available within Australia.
- Together the goal is global expansion across South Korea, the UK, the US, Hong Kong, and Singapore by 2025.
- The plan also includes securing a local production base for Rationale, as well as expanding the business’s retail hold in Australia.
- The two companies will also explore the possibilities of joint research and development in the future.
- Aside from its new alignment with Rationale, Amorepacific has launched flagships for Laneige and Innisfree to Australia, as well as new-to-market Sulwhasoo in Sephora.
Photo: via Amorepacific