AmorePacific buys Australian luxury skincare brand

South Korean beauty firm AmorePacific has acquired a substantial minority stake in Australian luxury skincare brand Rationale.

The investment is aimed at boosting AmorePacific’s credentials in the high-end personalized cosmetics market and will help Rationale expand across Asia, focusing on South Korea, Hong Kong, and Singapore initially during the next five years. The deal also effectively gives AmorePacific a manufacturing facility in Australia.

Rationale currently operates 15 flagship stores in Australia, sells via its own online site and also through a network of about 50 medical agencies including dermatologists and plastic surgeons.

Under the deal, AmorePacific will secure an advisory role and voting rights on Rationale’s board.

“With a truly shared innovation vision, Rationale and AmorePacific will take personalized skincare solutions to a new level,” said Saehong Ahn, president of AmorePacific, in a statement.

“AmorePacific will continue to look into mergers and acquisitions and partnerships with promising companies and secure opportunities for future growth.”

Richard Parker, who founded Rationale in 1992, described the alignment between the two companies as “intuitive”.

“Rationale is acknowledged worldwide as the environmental skincare authority and leader in epigenetic research, and we are thrilled to be empowered to expand this vital work with AmorePacific.