Goldman Sachs, Bain to buy majority stake in cosmetics firm Carver Korea (updated)

It's Hanbul

18/07/2016 02:53

* Goldman, Bain paying more than $307 mln -source 
    * S.Korea cosmetics exports grew 44 pct y-o-y in 2015 
 
 (Adds more foreign investment cases, industry growth) 
    By Se Young Lee and Joyce Lee 
    SEOUL, July 18 (Reuters) - Goldman Sachs Group Inc  GS.N  
and Bain Capital Private Equity will acquire a majority stake in 
unlisted cosmetics maker Carver Korea Co Ltd, seeking to tap 
into the growing popularity of South Korean beauty products in 
markets such as China. 
    The companies said in a joint release that Carver Korea 
founder and Chairman Lee Sang-rok, who held a 60.2 percent stake 
in the firm at end-2015, will retain a minority stake and 
"participate in day-to-day management". 
    Details, including the price and specific stakes the foreign 
buyers are getting, were not disclosed. But a person familiar 
with the matter told Reuters that Goldman and Bain together are 
paying more than 350 billion won ($307.45 million) to get 
majority ownership of Carver.  
    The acquisition comes as the so-called Korean Wave of 
culture exports, from soap operas and K-pop music to food and 
fashion, boost overseas demand for beauty products. Major 
domestic brands such as Amorepacific Corp  090430.KS  have been 
among the chief beneficiaries, with their share prices soaring 
on hopes for sustained growth.  
    Kyobo Securities said in a report South Korean exports of 
cosmetics products set a quarterly record of $874.3 million in 
April-June, thanks to growing shipments to China and the United 
States.  
    January-May sales for Carver, which owns beauty product 
brands including flagship skincare line A.H.C., were up more 
than 200 percent from a year earlier and topped the 150 billion 
won figure for all of 2015, the joint statement from Carver, 
Goldman and Bain said.  
    Carver sells about 1,000 products in South Korea, China and 
the U.S.  
    The acquisition follows other foreign investment into South 
Korean cosmetics firms, such as Estee Lauder Companies Inc 
 EL.N  acquiring a stake of unknown size in the parent firm of 
Korean skincare brand Dr.Jart+ in October 2015. 
    Also last year, China's Jumei International Holding Ltd 
 JMEI.N  invested about $125 million in the "snail cream" maker 
Its Skin Co Ltd  226320.KS , while another China investor Lancy 
Group acquired 10 percent of unlisted "mask pack" maker L&P 
Cosmetics Co Ltd for $51 million, according to Its Skin and L&P 
Cosmetics officials. 
    Officials at Jumei and Lancy could not be immediately 
reached for comment. 
    South Korea's cosmetics output grew to 10.7 trillion won in 
2015, up 20 percent from the previous year, while cosmetics 
exports grew 44 percent from the previous year to $2.59 billion 
in 2015 due to growing overseas popularity of "K-beauty" 
products, according to the country's Ministry of Food and Drug 
Safety. 
   
($1 = 1,136.5000 won) 
 
 (Reporting by Se Young Lee and Joyce Lee) 
 ((jungyoon.lee@thomsonreuters.com; +82 2 3704 5609; Reuters 
Messaging: jungyoon.lee.thomsonreuters.com@reuters.net)) 
 
Keywords: GOLDMAN SACHS BAIN/CARVER KOREA