SEOUL, Oct. 24 (Korea Bizwire) – LG Household and Healthcare is expected to boost its sales volume by acquiring CNP Cosmetics, a local “cosmeceuticals” firm, even though it failed to win a bid for U.S. cosmetics company Elizabeth Arden.
The Korea’s leading cosmetics company announced on October 22 that it signed a 54.2-billion-won agreement to buy an 86 percent stake in CNP Cosmetics. The local cosmeceuticals product manufacturer, founded in March, 2000, created a boom in cosmeceuticals products in South Korea.
As sales volume of the brand created by CHA Gangnam Medical Center last year was 24.0 billion won, or about US$22.7 million, yielding a 4.8-billion-won operating profit, an affiliate of LG Group is expected to increase its sales volume by 24.0 billion won.
In addition, CNP’s existing distribution channels will also help expand LG’s sales network. CNP’s beauty products are currently sold in CNP Skin Laser Clinics, Korean-style drug store CJ Olive Young and online shopping malls. The Seoul-based LG Group company has long suffered from weak retail channels.
The takeover is expected to become a more powerful growth engine for the leading cosmetics manufacturer which hit a record-high level at 1,230.4-billion-won sales in the third quarter this year. Its operating profit was 150.2 billion won during the same period, also hitting the record.
LG Household and Healthcare is offering many beauty brands such as Whoo, O Hui, SU:M37, Belif, The Face Shop, and so forth in various price ranges. As they are widely popular among Chinese tourists, those products are now sold in duty free shops in South Korea as well as exported to China.
By Veronica Huh (email@example.com)