Unilever seals $2.7bn deal for South Korean skin care company

by Frankie Norman September 27, 2017, 0:19
Unilever seals $2.7bn deal for South Korean skin care company

Consumer goods giant Unilever has agreed to buy South Korean beauty business Carver Korea in a €2.3bn (£2bn) deal, as the company looks to shift its focus away from its food division and towards personal care.

Unilever (LON:ULVR) has inked a deal to buy skincare business Carver Korea, the Anglo-Dutch company has said. It is South Korea's third largest cosmetics company after AmorePacific and LG Household and Healthcare. "It will significantly strengthen our position in North Asia, the largest skin care market in the world".

Carver sells age-management, skin-hydration and skin-nourishment products under the brand AHC.

The deal delivers a whopping profit for the two global investment companies which purchased a 60-percent stake in Carver Korea for 430 billion won ($397 million) in June past year.

Carver Korea, Bain Capital and Goldman Sachs were not immediately available for comment.

Carver Korea was established in 1999 as a firm supplying exclusively to private beauty salons.

"'They help preserve our market position in attractive segments where we can bring our global scale and local strengths to bear, ' the company said in its most recent annual report,' de la Merced points out".

Unilever paid €2.27bn for its stake in Carver, a fast-growing skincare business which reported a threefold increase in revenues previous year to €321m. "That would have valued the whole company at $833 million, less than a third of what Unilever is paying, but Carver's net profit almost quadrupled a year ago to $117 million, from $32 million in 2015, public filings show", they write. This is reflective of a "recalibration" of advertising spend in the overall market, strong savings delivery from its zero-based budgeting programme, as well as innovation and support plans weighted towards the second half of 2017, particularly in personal care.

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