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Target Corp. announced an agreement to acquire the DermStore Beauty Group. The acquisition positions Target to expand its share of the rapidly evolving online beauty market and will further differentiate the company’s offerings in this important retail segment.
Following the transaction closing, DermStore will become a new, wholly owned subsidiary of Target. DermStore will continue to operate as a separate entity under its online name, DermStore.com. Target believes this transaction presents a strategic growth opportunity; however, there will not be any material impact to Target’s 2013 results.
“There is no doubt that the online beauty industry is growing rapidly, and this unique opportunity enables Target to gain insight into the superior, online customer experience DermStore provides,” said Casey Carl, president of multichannel and senior vice president, enterprise strategy, Target. “Not only will DermStore’s 750-plus brands offer Target expanded breadth across the beauty and skin care industries, but also access to exceptional content and helpful resources we know consumers want.”
Dan Obegi, current CEO of DermStore, will be president of the wholly owned subsidiary. “DermStore’s success was built on understanding the beauty market and catering to a shopper who’s seeking a wide array of prestige products, exceptional service and product expertise,” said Obegi. “Our customers have come to trust us to consistently deliver a quality experience, and we are confident that this acquisition will benefit Target’s guests and expand Target’s online market share.”
The transaction is expected to close within 60 days. Financial terms are not being disclosed.