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Beauty brand CosRx has been acquired after Amorepacific upped its stake in the company.
Amorepacific announced it will acquire 288,000 remaining shares from CosRx’s largest shareholder and related parties for 755.1 billion won (about $567.3 million as of press time), according to a company press release. After acquiring 38.4% of CosRx’s shares in 2021, Amorepacific is now expected to own 93.2% of the company’s shares. Amorepacific’s other brands include Sulwhasoo, Laneige, Innisfree and Mamonde, according to its website.
"We are thrilled that CosRX, which has shown rapid growth through differentiated products and marketing based on an exceptional understanding of digital channels, has become a part of our group,” Seunghwan Kim, CEO of Amorepacific Corporation, said in a statement. "Moving forward, we aim to amplify CosRx's unique strengths while also integrating Amorepacific's vision and business management expertise to develop it into a captivating brand that global customers will love."
After Amorepacific made the equity investment in September 2021, the company and CosRx co-developed and launched a number of products, including the Retinol 0.1 Cream and the Vitamin C 23 Serum for the brand’s line, The RX, which has been successful overseas, according to the company. Amorepacific aims to accelerate its global expansion through collaborations with CosRx.
CosRx has expanded to about 140 countries, including those in North America, Europe and Southeast Asia.
The beauty company was founded 10 years ago and focuses on hypoallergenic skin care. The brand has experienced rapid growth, with average annual net sales growing over 60% in the past three years. CosRx in 2022 reported 204.4 billion won in annual sales. In the first six months of this year, the brand reached 190.2 billion won in sales and 71.7 billion in operating profit. The company said international represents 90% of its sales.
Beauty M&A activity has been heating up lately. E.l.f Beauty in August announced it entered into an agreement to acquire Naturium for $355 million. That same month Kao Corporation and its subsidiaries in Australia and the U.S. agreed to acquire Bondi Sands for an undisclosed amount.
via https://www.aiupnow.com
Caroline Jansen, Khareem Sudlow
