The world’s coveted K-brands .. ‘Love Call’ and ‘Dr.Jart’ Haven B. sold about 1.3 trillion won
As K-brands in China and other Asian regions have risen, super large capitals from beauty to fashion are continuing. In particular, the success of young entrepreneurs suggests that a virtuous cycle of Korean venture ecosystem is being formed.
According to the industry on the 23rd, Haven & B, which operates the dermat cosmetic brand Dr.Jart, signed a stock transfer agreement with Estee Lauder in New York in the morning on the 18th. Acquisition of two-thirds of the remaining equity interest, excluding existing investment shares. The company’s value is estimated at W2tr and the acquisition price is estimated at W1.3tr.
Dr.Jart is a derma cosmetic brand famous for its caffeine. CEO Lee Jin-wook has been leading 15 years. As it became popular as a ‘cosmetic made by a dermatologist’, it succeeded in various lines such as Cicapair, Ceramaidine, Vital Hydra Solution, and The Mask. The company’s best performance was achieved this year with 17.7 billion won in Alibaba Group Gwanggun Festival.
Acquirer Estee Lauder positively judged the impact of Dr.Jart on the American and Asian millennials. In particular, Dr.Jart is expected to contribute to Estee Lauder’s portfolio of skin care and to expand its consumer base in Asia Pacific, North America and the UK.
This is not the first time that large global companies have considered M & As with domestic cosmetics companies. Carver Korea, which runs AHC, was a hot topic when it was sold to Unilever, a UK- and Dutch-based household goods company, in 2017. It was an example of the industry last year that Kim Nye-hee, who started from Dongdaemun, was sold to French cosmetics company L’Oreal due to the success of Three Concept Eyes (3CE).
In some cases, the fashion industry has attracted attention as a large M & A. As part of its efforts to improve its financial structure, E-Land sold its cases such as Casewiss and Palladium to Chinese sports companies, starting with the core brand Tini Winnie. Recently, Casewiss sold for 300 billion won to X-Stepp.
In the food and beverage sector, domestic brands are continuing to promote. Milk Tea Specialty Brands entered into a trading deal with TA Associates, a US private equity manager, in August. The husbands of the Korean private equity fund Unison Capital and former CEO Kim Yeo-jin of Gong Cha Korea have handed over 100% of the shares to W350bn. Prior to this, Morgan Stanley’s private equity fund, Morgan Stanley PE, in 2011, fully acquired Nolbu NBG, which is famous for Nolbo Bossam and bags.
It is believed that as global companies entered China and other Asian regions, they selected Korean ‘edge’ companies as a bridgehead. This is why growth companies that lead local trends across beauty, fashion, and consumer goods are treated in the M & A market along with potential growth potential.
Seo Yong-gu, president of Sookmyung Women’s University Business School, said, “With only 10 domestic unicorn companies, the success of these young entrepreneurs seems to be a spark of hope in a dark Korean economy.” A virtuous cycle is formed because the funds are reinvested instead of personally useful. ”