This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Target To Expand Beauty Business Through Acquisition Of DermStore

Target Corp. (NYSE: TGT) today 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, 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 skincare 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 and will report to Mr. Carl.

“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 Dan Obegi, current CEO of DermStore. “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. This announcement follows Target’s recent acquisition of CHEFS Catalog and earlier in 2013; more information on that transaction is available here

About DermStoreDermStore is the leading and fastest growing independent skin care e-commerce site in the United States with a comprehensive portfolio of prestige and professional products offered to over one million active customers. The Company was founded in 1999 by a board certified dermatologist and features over 26,000 SKUs and 750 authorized brands such as SkinMedica, SkinCeuticals, Obagi and Dermalogica. The company recently launched two additional websites, and, extending its reach to cosmetics and hair care.

Wells Fargo Securities, LLC is serving as the exclusive financial advisor to DermStore on the transaction. Latham & Watkins LLP is serving as legal counsel to DermStore.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,045.81 -4.94 -0.03%
S&P 500 2,013.43 +15.91 0.80%
NASDAQ 4,823.7820 +12.9940 0.27%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs