Amorepacific to acquire significant minority stake in COSRX Deal likely to help Korean cosmetics maker expand its share in global beauty market

Translated by Ryu Ho-joung 공개 2021-09-24 08:09:40

이 기사는 2021년 09월 24일 08:07 더벨 유료페이지에 표출된 기사입니다.

Amorepacific Corp, a South Korean cosmetics maker, is set to acquire a significant minority stake in derma cosmetics brand COSRX as it seeks to expand its presence in the global market.

The company said earlier Friday that it had agreed to acquire a 38.4% stake in COSRX for 180 billion won ($153 million) in an all-cash deal. The transaction is expected to close on October 29.

The deal has made Amorepacific the second largest shareholder of COSRX. Amorepacific also has a call option to buy the remaining 57.6% stake (excluding treasury shares) in the derma skincare brand over a two-year period from 2024 to 2025.

Founded in 2013, COSRX targets customers with sensitive skin and has grown rapidly in the global market in recent years. The deal valued the company at about 470 billion won, much higher than its equity book value.

Amorepacific is expected use the deal as a springboard to expand its global presence. COSRX recorded revenue of 80.2 billion won in 2020, up 40% year-on-year, with overseas markets accounting for 80% of the total sales.

COSRX products are sold in more than 4,500 retail stores across over 40 countries around the world. The brand is especially popular in the US, Europe and Asia, running shops in department stores in Germany, Norway and Netherland and selling its products through China’s Tmall Global and Douyin.

Amorepacific has been focusing on expanding its derma cosmetics offerings. As part of such efforts, the firm recently decided to merge with its affiliate, Aestura, a derma beauty brand. The partnership with COSRX is expected to create synergies with the cosmetic maker’s existing brands.

“COSRX is a popular brand among millennials and Generation Z consumers globally with its strong digital marketing capabilities. The partnership with COSRX will help enhance the status of K-beauty and grow the company,” said Ahn Se-hong, chief executive of AmorePacific. “We will continue to actively partner with beauty brands with growth potential at home and abroad.” (Reporting by Nu-ri Moon)
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