SEOUL, Sept. 27 (Korea Bizwire) – International consumer goods giant Unilever has agreed to acquire South Korean cosmetics firm Carver Korea for around three trillion won, marking the largest merger and acquisition deal in the South Korean cosmetics industry to date.
According to industry sources and the international media on Monday, Unilever Global is set to acquire the South Korean cosmetics firm from Bain Capital Private Equity, Goldman Sachs and the founder of the company.
In a press release, Alan Jope, President of Unilever’s Personal Care Division said, “We are delighted to be acquiring Carver Korea.
“It will significantly strengthen our position in North Asia, the largest skincare market in the world.”
The move has since been widely seen as part of Unilever’s effort to reaffirm its presence in the Asian beauty market as the third-largest cosmetics firm in South Korea. Competitors like AmorePacific and LG Household & Health Care have been growing dramatically over the last few years, posting 429.5 billion won in sales and 180.4 billion won in profit.
Carver Korea, founded in 1999, has been praised for its high technology and quality in the cosmetics industry, boasting over 20 patents regarding skin care.
Since its Aesthetic Hydration Cosmetic (AHC) eye cream became a hit on shopping channels in 2013, the cosmetics firm gradually grew its distribution channels both online and offline, posting sales growth each year over the last few years.
During last year’s “Chinese Black Friday,” also known as “Singles’ Day,” Carver Korea’s AHC facial sheet mask sold a whooping 650,000 units in one day. Experts believe that the brand’s image and its popularity in China can help Unilever tap deeper into the Chinese market.
The Dutch-British consumer goods company enjoyed success for 30 years after it launched its business in 1986 in China, until the second half of last year, when the company experienced a 20 percent sales drop.
As Jope said in a press release, the purchase will help rebrand Unilever’s image and “offer luxury skincare products at attainable price points.” Industry experts believe the acquisition of Carver Korea can help flip the downward trend the international company experienced in recent months in the Chinese market.
Last year, Carver Korea posted record high sales and profit performance after hiring high-profile celebrities like Lee Bo-young, Kang so-ra, and Hollywood actress Anne Hathaway.
Hyunsu Yim (email@example.com)